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Shareholder Alert: Robbins LLP Reminds Investors that Butterfly Network, Inc. (BFLY) f/k/a Longview Acquisition Corp. (LGVW) is Being Sued for Misleading Shareholders

The Class: Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of two classes:

  1. all persons or entities that purchased or otherwise acquired Butterfly Network, Inc. (NYSE: BFLY) between February 16, 2021 and November 15, 2021; and
  2. holders of Butterfly common stock as of the record date for the special meeting of shareholders held on February 12, 2021, to consider the merger between Longview Acquisition Corp. and Butterfly and entitled to vote on the merger

The complaint alleges violations of the Securities Exchange Act of 1934. Butterfly is a digital health company that develops, manufactures, and commercializes ultrasound imaging solutions in the U.S. and internationally.

If you suffered a loss due to Butterfly Network, Inc.'s misconduct, click here.

What is this Case About: Butterfly Network, Inc. (BFLY)

According to the complaint, on February 12, 2021, Longview shareholders voted to approve the merger with Butterfly, and on February 16, 2021, changed its name to Butterfly Network, Inc. and began trading on the NYSE.

The complaint alleges that throughout the class period, defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Additionally, the Proxy and defendants failed to disclose that: (i) Butterfly had overstated its post-merger business and financial prospects; (ii) Butterfly's financial projections failed to take into account the COVID-19 pandemic's broad consequences, which included healthcare logistical challenges, and medical personnel fatigue; and (iii) Butterfly's gross margin levels and revenue projections were less sustainable than the Company had represented.

On November 15, 2021, Butterfly announced its financial results for the third quarter of 2021. In a press release, Butterfly advised, among other things, that the Company's total gross margin for the quarter was negative 35% and that the Company expected its revenue for 2021 to be $60-$62 million, significantly below the guidance it gave out in Q1 of $76-80 million. On an earnings call the same day, Butterfly's CEO stated that the Company's results were impacted by "healthcare logistical challenges, and doctor, nurse, and medical technician fatigue concurrent with COVID conditions and its broad consequences." On this news, Butterfly's stock price fell $1.08, or 12.55%, to close at $7.52 per share on November 15, 2021.

Next Steps: If you acquired shares of Butterfly Networks, Inc. (BFLY) between February 16, 2021 and November 15, 2021, or held Butterfly common stock on February 12, 2021, you have until April 18, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas

(800) 350-6003

Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Butterfly Network, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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