Based in Plano, Texas, Integer purports to be one of the largest medical device contract development and manufacturing organizations in the world. The company contracts with medical device companies to manufacture cardiac rhythm management and cardio and vascular (“C&V”) medical devices. Integer’s C&V product line generates approximately 60% of the company’s total revenue. As a part of the C&V product line, Integer manufactures electrophysiology (“EP”) devices, which diagnose and map the heart’s electrical activity to address problems such as irregular heartbeats (cardiac arrhythmias).
Prior to the class period, EP devices underwent a technological revolution as Integer customers began to develop devices for pulse field ablation (“PFA”) procedures that use brief, high-energy electrical pulses to treat atrial fibrillation. In turn, the industry became increasingly focused on integrating EP devices and PFA platforms to effectuate a more seamless cardiac procedure. As a result, EP devices represented a significant growth driver for Integer’s C&V segment.
Leading up to the class period, CEO Dziedzic described PFA platforms as “a tailwind” due to the company’s “vertically integrated offering[,]” while also touting that Integer “benefit[ed] significantly from electrophysiology procedure growth.” CEO Dziedzic further explained, “We participate in the full procedure, which is . . . one of the strengths of Integer.”
The class action alleges that, during the class period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) Integer materially overstated its competitive position within the growing EP manufacturing market; (2) despite Integer’s claims of strong visibility into customer demand, the company was experiencing a sustained deterioration in sales relating to two of its EP devices; (3) in turn, Integer mischaracterized its EP devices as a long-term growth driver for the company’s C&V segment; (4) as a result of the above, Defendants’ positive statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
The truth emerged before markets opened on October 23, 2025, when Integer disclosed that it had lowered its full-year 2025 sales guidance to a range between $1.840 billion and $1.854 billion, which fell short of analysts’ estimates. Integer further disclosed that it expected net sales growth of -2% to 2% and organic sales growth of 0% and 4% for the full year of 2026. During the corresponding earnings call, COO Khales revealed that Integer “expect[s] sales of [three] new products to decline in 2026,” with two of three being “electrophysiology [EP] products.” COO Khales further revealed that “the market adoption of these products has been slower than forecasted.” During the same earnings call, CFO Smith informed investors that, for the fourth quarter of 2025, “we expect C&V sales growth to decelerate from recent trends, reflecting a decline in the [two] new products in electrophysiology mentioned earlier. This is consistent with our prior outlook. However, we now expect this impact to continue into 2026, primarily the first half.” On this news, Integer common stock fell $35.22 per share, or more than 32%, from a closing price of $109.11 per share on October 22, 2025, to a closing price of $73.89 per share on October 23, 2025.
On April 10, 2026, Plaintiff filed its amended class action complaint. On May 1, 2026, Defendants filed a motion to dismiss the Complaint. Plaintiff’s opposition to Defendants’ motion to dismiss is due on May 21, 2026, and Defendants’ reply brief is due June 4, 2026. Oral argument on the motion is currently set for June 11, 2026.
