The litigation centers on the period between February 28, 2024, and February 25, 2026, during which Procept allegedly maintained that handpiece unit sales were a reliable proxy for clinical demand. Management reportedly attributed revenue volatility to external factors, such as saline supply constraints, rather than disclosing that handpiece sales had consistently outpaced actual procedures by 8% to 16% each quarter since early 2023.

Following a series of disclosures that culminated on February 25, 2026, Procept shares dropped approximately 75%—a loss of roughly $75 per share from their peak. The complaint, filed in the United States District Court for the Northern District of California, asserts that the company’s failure to report accurate utilization data left shareholders unaware that over 10,000 units of excess inventory had accumulated in the field. Joseph E. Levi of Levi & Korsinsky, the firm representing the class, argues that investors relied on these sales figures as a primary indicator of the company’s recurring revenue health.