Investors Prepare to Lead Lawsuit Against 3D Systems for Securities Fraud

3D Systems Securities Fraud Investigation



Investors in 3D Systems Corporation may soon have the opportunity to participate in a significant legal battle regarding alleged securities fraud. Faruqi & Faruqi, LLP, a nationally recognized securities law firm, has opened an investigation into potential violations involving 3D Systems. They encourage anyone who has faced losses exceeding $50,000 between August 13, 2024, and May 12, 2025, to discuss their legal rights with the firm.

Background on 3D Systems


3D Systems has been at the forefront of 3D printing technology, providing innovative solutions across various industries. However, recent financial disclosures have raised concerns among investors, leading to questions about the transparency and accuracy of the company’s public statements.

On March 26, 2025, 3D Systems released its fourth-quarter financial results, revealing a non-GAAP earnings-per-share loss of -$0.19. This figure fell short of consensus estimates, leading to disappointment among investors. Furthermore, the company reported a significant decline in sales, with a $9 million revenue drop linked to changes in its Regenerative Medicine Program accounting practices. As a result, the company's stock took a dive, plummeting 20.96% in response to the news.

The Allegations


Faruqi & Faruqi alleges that 3D Systems and its executives misrepresented the company’s financial health and business resilience. The firm claims that:
1. The company understated the effects of reduced customer spending on its financial performance while overstating its ability to weather industry challenges.
2. Recent changes in milestone criteria for critical programs were not disclosed, negatively impacting revenue forecasts.
3. Public statements made by 3D Systems were materially misleading, affecting the decisions of investors.

Consequences for Investors


The fallout from these disclosures has been severe. After a disappointing first-quarter announcement on May 12, 2025, which reported an 8% year-over-year decline in revenue, shareholders witnessed another dramatic drop in stock price, closing down 26.6%. Such fluctuations have not only challenged investor confidence but have also sparked discussions of accountability.

Taking Action


With the firm urging investors to act swiftly, the deadline for becoming a lead plaintiff is set for August 12, 2025. The lead plaintiff serves a pivotal role by representing the class in its pursuit in court and is typically the investor who has suffered the largest financial losses. However, being a lead plaintiff or remaining an absentee member of the class does not affect an investor’s ability to recover losses.

Faruqi & Faruqi is particularly interested in hearing from individuals who have information regarding 3D Systems' practices. This includes potential whistleblowers or former employees who may provide additional evidence to support the case.

Conclusion


If you believe you have been affected by 3D Systems' alleged misstatements, consider reaching out to Faruqi & Faruqi for legal advice on how to proceed. The ramifications of this investigation can be far-reaching, offering a pathway to accountability and potentially recovering losses for investors who have been adversely affected by the company's performance and disclosures.

To learn more about this class-action lawsuit or to speak with Josh Wilson, a partner at Faruqi & Faruqi, you can reach him directly at 877-247-4292 or through their website. Stay tuned for updates as this legal matter unfolds, focusing on investor rights and corporate accountability in the face of alleged fraud.

Topics Financial Services & Investing)

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