The scrutiny centers on the company’s Inari Medical operations, acquired in February 2025. During the Q2 2026 earnings call on July 30, CEO Kevin Lobo acknowledged significant backorders at a single plant but assured stakeholders the issue was being managed and would stabilize by the end of the third quarter. That disclosure initially sent shares down 6.4 percent.

However, during the September 8 Wells Fargo Healthcare Conference, CFO Preston Wells offered a starkly different outlook. He admitted that inventory shortages were preventing the company from securing new business and confirmed the manufacturing problems would extend into the fourth quarter. This reversal triggered an 8.8 percent stock price decline, erasing over $10 billion in value.

Reed Kathrein, a partner at Hagens Berman, stated the firm is now investigating exactly when Stryker leadership realized these problems were not resolved. The firm is currently soliciting information from investors and potential whistleblowers to determine if the company violated federal securities laws through a lack of transparency.