Just days after raising $66 million in a public offering, Goleta-based breast implant manufacturer Sientra is facing multiple class action lawsuits that allege violations of federal securities laws.
On September 23, Sientra sold 3 million new shares for $22 each, according to one of the lawsuits. The same day, the United Kingdom's Medicines and Healthcare Products Regulatory Agency (MHRA) announced it was suspending the sale of Silimed-brand implants after a safety inspection at one of the company's manufacturing plants in Brazil revealed that the surfaces of some devices — including silicone breast, pectoral, calf, and facial implants — were "contaminated with particles." Testicular and penile implants were also affected. The MHRA said it is currently testing product samples to determine any health risks.
The news sent Sientra's shares plummeting over 52 percent on September 24 to close at $9.70 per share. The lawsuits claim Sientra executives knew of the Silimed contamination issues but hid the information from investors before the public offering. The company's disclosures around quality control and its financial standing were false and misleading, the filings claim, and investors unfairly suffered.