Treace Medical Lawsuit: Fact, Fiction or Both?
Consider these three angles following the shareholder alert over the Treace Medical Investigation last week.
1. Fact
The double-edged sword of aggressive direct to consumer advertising, and questionable billing/coding suggestions to physicians to justify the higher cost of the “lapiplasty” kit finally caught up to the company, as reported by Culper Research.
2. Fiction
With a billion dollar plus valuation, Treace Medical is too large for an acquisition/merger, yet its portfolio is also too small to fend off long-term industry competition.
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3. Both
Success has many enemies, and often welcomes unwanted attention. Perhaps the investigation by Holzer & Holzer, LLC, an ISS top-rated securities litigation law firm, is yet another cautionary example for other companies currently focusing in on and harnessing direct-to-consumer advertising and social media to inflate their annual ROIs, simultaneously creating opportunity for market investors.
