The lawsuit alleges that PROCEPT misled the market by attributing revenue fluctuations to external factors, such as saline shortages, while failing to disclose that handpiece sales were outpacing actual procedure utilization. According to the complaint, the company’s valuation relied heavily on the assumption that handpiece orders mirrored real-world clinical use. However, disclosures on February 25, 2026, revealed that handpiece sales had exceeded procedure volume by 8% to 16% in every quarter since early 2023, resulting in over 10,000 excess field handpieces.

This inventory buildup, combined with a 30% sequential contraction in unit sales during the final quarter of 2025, triggered a rapid sell-off that saw the stock price plummet from a high of approximately $100 to under $25 per share. The legal action, filed in the United States District Court for the Northern District of California, claims these omissions constituted materially false statements that artificially inflated the company's market value. Investors seeking to participate in the recovery process are encouraged to contact Joseph E. Levi of Levi & Korsinsky, LLP, which is managing the litigation.