The lawsuit, filed by Hagens Berman Sobol Shapiro LLP, targets the period between February 28, 2024, and February 25, 2026. Plaintiffs allege that PROCEPT incentivized customers to stockpile single-use handpieces for its Aquablation therapy through late-quarter bulk discounts. These tactics reportedly pulled sales forward from future periods, creating an illusion of sustained growth while masking actual demand.

Financial cracks emerged on August 6, 2025, when the company missed quarterly sales estimates. Subsequent reports confirmed the depth of the issue: by February 2026, PROCEPT admitted that U.S. handpiece sales had consistently exceeded actual medical procedures since early 2023. This imbalance resulted in a backlog of over 10,000 excess units in the field. Following the revelation that the bulk discount program would be terminated to allow for inventory optimization, the company’s stock price dropped by $22.06. Reed Kathrein, a partner at Hagens Berman, stated the firm is investigating whether management intentionally misled investors regarding the company's operational health to meet market expectations.