The complaint, brought by Hagens Berman Sobol Shapiro LLP, centers on claims that PROCEPT misled shareholders regarding the health of its Aquablation therapy business. According to the filing, the company allegedly utilized late-quarter bulk discounts to incentivize customers to purchase handpieces beyond their actual procedural needs. This practice reportedly pulled forward future revenue to mask stalling demand, creating a significant inventory backlog that went undisclosed to the market for months.
The truth emerged through a series of quarterly reports, beginning in August 2025, when handpiece sales fell short of consensus estimates. By February 2026, the company finally acknowledged that excess customer inventory had swelled to over 10,000 units. Management subsequently moved to terminate the discount program, citing the need to optimize field inventory. These disclosures triggered a sharp decline in share value, with the stock price dropping more than 48% from its August 2025 peak.
Reed Kathrein, the Hagens Berman partner leading the investigation, stated that the firm is scrutinizing whether the company intentionally manipulated sales cycles to meet market expectations. The deadline for investors to petition the court to serve as lead plaintiff is September 22, 2026.
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