TMCI Lawsuit Alert! Class Action Lawsuit Against Treace Medical Concepts

A class action lawsuit was filed against Treace Medical Concepts (TMCI) by Levi & Korsinsky on April 11, 2025. The plaintiffs (shareholders) alleged that they bought TMCI stock at artificially inflated prices between May 8, 2023, and May 7, 2024 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Treace Medical Concepts stock during that period can click here to learn about joining the lawsuit.

Treace Medical Concepts is a medical device company, focused on designing and developing medical devices for foot and ankle surgeons in the U.S.

The company’s claims about demand for its 3D bunion correction system, called Lapiplasty, are at the heart of the current complaint.

Treace Medical Concepts’ Misleading Claims

According to the lawsuit, Treace Medical and two of its senior officers (the Defendants) repeatedly made false and misleading public statements throughout the Class Period. Particularly, they are accused of omitting truthful information about the effect that competition had on demand for and utilization of its primary product, and ancillary issues from SEC filings and related material.

For instance, during the Class Period, the defendants consistently claimed that the company was experiencing growing demand for its devices and solutions from its existing customer surgeon base. Additionally, the company was focused on adding more surgeons in 2024 and beyond.

During an earnings call, the CEO stated that although there was competition from other companies offering similar products, Treace Medical was not seeing any incremental opposition to the demand momentum for its devices.

Similarly, at a Healthcare Conference held on January 9, 2024, the CEO mentioned that more and more cases were coming from its existing surgeon base and that there was a favorable utilization ramp in its solutions.

Finally, during the February 27, 2024 earnings call, the CEO noted that the company expected utilization rates to grow, along with the addition of new surgeons in the future.

However, subsequent events (discussed below) revealed that Treace Medical Concepts had failed to inform investors about how increasing competition was impacting the demand for its products and related sales.

Plaintiffs’ Arguments

The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors about the diminishing demand for its devices owing to rising competition.

The information became clear after the market closed on May 7, 2024, when the company released its Q1FY24 results. In the same press release, Treace Medical slashed its full-year fiscal 2024 sales outlook to a range of $201 million to $211 million, representing growth of 7% to 13%, compared to FY23. This was significantly lower than the company’s previous sales guidance range of $220 million to $225 million. Following the news, TMCI stock plunged 62.5% on May 8.

To conclude, the defendants allegedly misled investors regarding the diminishing demand for Lapiplasty and the related revenues. Owing to these issues, TMCI stock has lost 61.6% in the past three years, causing massive damage to shareholder returns.