The litigation, spearheaded by Hagens Berman Sobol Shapiro LLP, centers on claims that PROCEPT misled shareholders regarding its financial health and operational practices. According to the complaint, the company utilized an aggressive, undisclosed discount program to incentivize customers to place bulk orders for its Aquablation therapy handpieces. These sales were reportedly pulled forward from future periods, creating a facade of growth while masking a growing surplus of inventory in the field.

The true scale of the discrepancy emerged through a series of quarterly disclosures. By August 2025, handpiece sales began to miss consensus estimates, eventually forcing management to admit that customers were holding excess stock. By February 25, 2026, the company revealed a surplus of over 10,000 units and a 30% sequential cratering in U.S. sales. Following these revelations, PROCEPT shares declined by more than 48% from their August 2025 levels. Hagens Berman partner Reed Kathrein indicated the investigation focuses on whether these sales tactics were intentionally used to meet market expectations at the expense of transparency.