Robbins Geller Rudman & Dowd LLP announces that: (a) all persons or entities that purchased or otherwise acquired Butterfly Network, Inc. f/k/a Longview Acquisition Corp. (NYSE: BFLY; BFLYWT) securities between February 16, 2021 and November 15, 2021, inclusive (the “Class Period”), and/or (b) all holders of Butterfly Network common stock as of the record date for the special meeting of shareholders held on February 12, 2021 to consider approval of the merger between Longview and Butterfly Network (the “Merger”) and entitled to vote on the Merger have until April 18, 2022 to seek appointment as lead plaintiff in Rose v. Butterfly Network, Inc., No. 22-cv-00854 (D.N.J.). Commenced on February 16, 2022, the Butterfly Network class action lawsuit charges Butterfly Network, and certain of Butterfly Network and Longview’s top executives and directors with violations of the Securities Exchange Act of 1934.
If you suffered significant losses and wish to serve as lead plaintiff of the Butterfly Network class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Butterfly Network class action lawsuit must be filed with the court no later than April 18, 2022.
CASE ALLEGATIONS: Butterfly Network is a digital health company that develops, manufactures, and commercializes ultrasound imaging solutions. Longview was a special purpose acquisition company (“SPAC” or blank-check 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.
On November 20, 2020, almost one year into the ongoing COVID-19 pandemic, Butterfly Network issued a press release announcing that it had entered into a merger agreement with Longview. The Butterfly Network class action lawsuit alleges that on the basis of a defective proxy statement issued in connection with the Merger (the “Proxy”), on February 12, 2021, Longview shareholders voted to approve the Merger at a special shareholder meeting. Following the consummation of the Merger on February 16, 2021, Longview changed its name to “Butterfly Network, Inc.” and Butterfly Network stock began trading on the New York Stock Exchange (“NYSE”). Prior to the Merger, Longview’s stock, warrants, and ownership units were traded publicly on the NYSE under the ticker symbols “LGVW.U,” “LGVW,” and “LGVW WT,” respectively.
The Butterfly Network class action lawsuit alleges that the Proxy contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing its preparation. The Butterfly Network class action lawsuit further alleges the Proxy and defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Butterfly Network had overstated its post-Merger business and financial prospects; (ii) notwithstanding the ongoing COVID-19 pandemic, Butterfly Network’s financial projections failed to take into account the pandemic’s broad consequences, which included healthcare logistical challenges and medical personnel fatigue; (iii) accordingly, Butterfly Network’s gross margin levels and revenue projections were less sustainable than Butterfly Network had represented; (iv) all the foregoing was reasonably likely to have a material negative impact on Butterfly Network’s business and financial condition; and (v) as a result, Butterfly Network’s public statements were materially false and misleading at all relevant times.
On November 15, 2021, Butterfly Network announced its financial results for the third quarter of 2021. In a press release, Butterfly Network advised, among other things, that its total gross margin for the quarter was negative 35% and that it expected its revenue for 2021 to be $60 million to $62 million, significantly below the guidance it gave out in the first quarter of $76 million to $80 million. That same day, on an earnings call with investors and analysts to discuss its financial results for the third quarter, Butterfly Network’s CEO, defendant Todd Fruchterman, stated that Butterfly Network’s results were impacted by “healthcare logistical challenges, and doctor, nurse, and medical technician fatigue concurrent with COVID conditions and it’s [sic] broad consequences.” On this news, Butterfly Network’s stock price fell by more than 12%, damaging investors.
Subsequent to, and due to, the closing of the Merger, the price of Butterfly Network common stock declined precipitously as the truth about Butterfly Network and the Proxy’s false and misleading nature were revealed over time.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits: (a) all persons or entities that purchased or otherwise acquired Butterfly Network securities during the Class Period, and/or (b) all holders of Butterfly Network common stock as of the record date for the special meeting of shareholders held on February 12, 2021 to consider approval of the Merger and entitled to vote on the Merger to seek appointment as lead plaintiff in the Butterfly Network class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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J.C. Sanchez, 800-449-4900