NEW YORK, March 12, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Butterfly Network, Inc. (“Butterfly” or the “Company”) f/k/a Longview Acquisition Corp. ( “Long-term vision”) BFLY and some of its officers. The class action, filed in the United States District Court for the District of New Jersey and registered as 22-cv-00854, is on behalf of a class consisting of all persons and entities other than defendants who purchased or otherwise acquired Butterfly securities between February 16, 2021 and November 15, 2021, both dates inclusive (the “Class Period”), and/or (b) all holders of Butterfly common stock on the date of record of the special meeting of shareholders held on February 12, 2021 to consider approving the merger between Longview and Butterfly (the “Merger”) and entitled to vote on the Merger; seeking to recover damages caused by defendants’ violations of federal securities laws and to pursue remedies under Sections 10(b), 14(a), and 20(a) of the Securities Exchange Act of 1934 ( the “Exchange Act”) and Rules 10b-5 and 14a-9 promulgated thereunder, against the Defendants, arising from materially false or misleading statements or omissions made during the Class Period and in the Circular of proxy issued in connection with the Merger (the “Proxy”).
If you are a shareholder who purchased Butterfly securities during the Class Period, and/or (b) all holders of Butterfly common stock as of the record date of the special meeting of shareholders held on February 12 2021 to consider the approval of the Merger, You have until April 18, 2022 to ask the Court to appoint you as Lead Class Plaintiff. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those applying by email are encouraged to include their mailing address, phone number and number of shares purchased.
Longview was a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses .
Butterfly, a digital health company, develops, manufactures and markets ultrasound imaging solutions in the United States and internationally. The Company offers Butterfly iQ, a portable, single-probe whole-body ultrasound system; and Butterfly iQ+, a point-of-care ultrasound imaging device that connects to a smartphone or tablet.
Between late 2019 and early 2020, a new strain of the coronavirus disease, commonly referred to as COVID-19, became an ongoing global pandemic, with the outbreak first identified in Wuhan, China in December 2019. The virus quickly spread to other countries. , including the United States, urging state, federal and private parties to adopt various health and safety measures to halt the spread of the disease, which has since claimed millions of lives.
On November 20, 2020, nearly a year into the ongoing COVID-19 pandemic, Butterfly issued a press release announcing that it had reached a merger agreement with Longview. Based on the defective proxy, on February 12, 2021, Longview shareholders voted to approve the merger at a special meeting of shareholders. Following the completion of the merger on February 16, 2021, Longview changed its name to “Butterfly Network, Inc.” and shares of Butterfly began trading on the New York Stock Exchange.
The Complaint alleges that, the Power of Attorney was negligently prepared and as a result contained misrepresentations of material facts or failed to state other facts necessary for the statements made not to be misleading and not prepared in accordance with the rules and regulations governing its preparation. In addition, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, the Attorney and the Defendants made false and/or misleading statements and/or failed to disclose that: (i) Butterfly exaggerated its business and financial prospects after the Merger; (ii) notwithstanding the ongoing COVID-19 pandemic, Butterfly’s financial projections did not take into account the general consequences of the pandemic, which included healthcare logistical challenges and medical staff fatigue; (iii) as a result, Butterfly’s gross margin levels and revenue projections were less sustainable than the Company had represented; (iv) any of the foregoing was reasonably likely to have a material adverse impact on Butterfly’s business and financial condition; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
On November 15, 2021, Butterfly announced its financial results for the third quarter of 2021. In a press release, Butterfly indicated, among other things, that the Company’s total gross margin for the quarter was negative 35% and that the Company forecast its 2021 revenue of $60 million to $62 million this year, significantly lower than the first-quarter forecast it gave of $76 million to $80 million. On the same day, during a conference call with investors and analysts to discuss the company’s third quarter financial results, Butterfly CEO Todd Fruchterman said the company’s results were impacted by ” the logistical challenges of healthcare, and doctor, nurse and medical technician fatigue along with COVID conditions and its broad consequences.”
On this news, Butterfly’s stock price fell $1.08 per share, or 12.55%, to close at $7.52 per share on November 15, 2021.
Following and due to the closing of the merger, Butterfly’s common stock price fell precipitously as the truth about Butterfly and the false and misleading nature of the proxy was revealed over time.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading law firms in the areas of corporate litigation, securities and antitrust. 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 the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. To see www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980