NEW YORK, June 27, 2025 /PRNewswire/ --
Pomerantz LLP announces that a class action lawsuit has been filed against 3D Systems Corporation ("3D Systems" or the "Company")
(NYSE: DDD) and certain officers. The class action, filed in the United States District Court for the District of Delaware, and docketed under
25-cv-00734, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired 3D Systems
securities between August 13, 2024 and May 12, 2025, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants'
violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired 3D Systems securities during the Class Period, you
have until August 12, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Danielle Peyton at email@example.com or 646-581-9980
(or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and
the number of shares purchased.
Click here for information about joining the class action
3D Systems provides 3D printing and digital manufacturing solutions in North and South America, Europe,
the Middle East, Africa, the Asia Pacific, and Oceania. The Company earns revenue from the sale of products and services through its two
operating segments: Healthcare Solutions and Industrial Solutions. The Healthcare Solutions segment includes dental, medical devices, personalized
health services, and regenerative medicine (the "Regenerative Medicine Program").
The Regenerative Medicine Program focuses on "the use of additive manufacturing for human organ transplantation."
Since 2018, 3D Systems has partnered with the biotechnology company United Therapeutics Corporation ("United") "with a long-term goal of developing
the capability to 3D print lungs that will allow patients with end-stage lung disease to receive transplants that will enable them to enjoy long and
active lives" (the "United Partnership"). The terms of the United Partnership include specific "milestone criteria"—i.e., requirements that must
be met for a stage in a development process to be considered completed. In late 2024, 3D Systems updated the United Partnership's milestone
criteria in response to changes in testing methodology.
The Company considers milestone criteria (and any updates thereto) when accounting for recognized revenue
from the United Partnership. Specifically, the Company earns milestone payments based upon the achievement of agreed-upon contract objectives (i.e.
milestones). Because these payments are contingent on future events, they generally represent a form of variable consideration. Under Accounting
Standards Codification 606-10-32-5, the revenue recognition standard—a uniform framework for recognizing revenue from contracts with customers—requires
an entity to estimate the amount of variable consideration to which it will be entitled under a contract. Accordingly, as the United Partnership
milestone criteria are updated, the Company must also update its estimates of the timing and probability that it will receive milestone payments
when accounting for recognized revenue.
Over the past several years, reduced customer spending has resulted in weakened sales across the 3D printing
industry. Nonetheless, 3D Systems has consistently maintained that, "despite a challenging operating environment," it "remain[s] optimistic about
the future" given its "sequential recovery and continued momentum in [its] robust customer pipeline." Further, the Company has touted that "[w]ith
[its] new products now gaining traction in the market, [its] focus is increasingly centered on driving gross margin expansion and operating expense
improvements in the face of continuing uncertainty in the global markets."
In March 2025, 3D Systems released its full-year 2025 guidance. Among other items, the Company projected
"[r]evenue within the range of $420 million to $435 million, representing essentially flat to modest growth," "[n]on-GAAP Gross Profit Margin
within the range of 37% to 39%," "[n]on-GAAP Operating Expense within the range of $200 million to $220 million," and "[a]djusted EBITDA to be
break even or better in Q4 2025."
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading
statements regarding the Company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements
and/or failed to disclose that: (i) 3D Systems had understated the impact of weakened customer spending on the Company's business, while overstating
its resilience in challenging industry conditions; (ii) in addition, the updated milestone criteria in the United Partnership would negatively
impact the Company's Regenerative Medicine Program revenue; and (iii) as a result, the Company's public statements were materially false and
misleading at all relevant times.
On March 26, 2025, 3D Systems issued a press release announcing its financial results for the fourth
quarter ("Q4") and full-year 2024. Among other items, 3D Systems reported Q4 non-GAAP earnings-per-share of -$0.19, missing consensus estimates
by $0.08 per share, and sales revenue of $111 million, representing a -3.4% year-over-year decline and missing consensus estimates by $4.17 million.
Further, for full-year 2024, the Company reported sales of $440.1 million, a decrease of 10% compared to the prior year, driven by "lower hardware
systems sales due to macroeconomic factors that are negatively impacting demand." Finally, 3D systems reported a "$9 million revenue reduction in
Q4 driven by a change in accounting estimates for [the Company's] Regenerative Medicine program." The Company disclosed that "[t]his change in estimate
[was] related to the now anticipated use of pre-clinical human decedent testing[,] [. . .] which led to refinement of the milestone technical criteria."
On this news, 3D Systems' stock price fell $0.57 per share, or 20.96%, to close at $2.15 per share on March 27, 2025.
Then, after the market closed on May 12, 2025, 3D Systems issued a press release announcing its financial
results for the first quarter ("Q1") of 2025. Among other items, 3D systems reported: revenue of $94.5 million, down 8% year-over-year and missing
consensus estimates of $99.5 million; a net loss of $37 million, or $0.28 per share, more than doubling the $16 million loss reported in Q1 2024;
an adjusted loss of $0.21 per share, deeper than consensus estimates of a loss of $0.14 per share; and adjusted EBITDA of a loss of $23.9 million,
deepening from a $20.1 million loss in Q1 2024. The Company attributed its disappointing results, in part, to a decline in material sales, mostly due to
inventory management issues in the dental portion of its Healthcare Solutions segment. 3D Systems also announced that it was withdrawing its full-year
2025 outlook, citing prolonged softness in customer capital spending and macroeconomic uncertainty.
On this news, 3D Systems' stock price fell $0.68 per share, or 26.6%, to close at $1.87 per share on May 13, 2025.
Market analysts were quick to comment on the Company's disappointing results. For example, on May 14, 2025,
an analyst from Seeking Alpha stated that he was "skeptical that [3D Systems] can transition to profitability in the near term" and suggested that
"[e]ven after a significant price drop, the stock isn't a bargain given shrinking revenues, lack of profitability, and low investor interest in the sector."
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged
as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known
as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues
in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct.
The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
email@example.com
646-581-9980 ext. 7980
SOURCE Pomerantz LLP
