Investigation into 3D Systems: Faruqi & Faruqi Advocates for Shareholders' Rights

Shareholders Alert: Investigating 3D Systems Corporation

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently looking into possible claims on behalf of investors who have suffered losses exceeding $50,000 in 3D Systems Corporation, particularly between August 13, 2024, and May 12, 2025. Investors are encouraged to reach out directly to the firm's Securities Litigation Partner, James (Josh) Wilson, for a discussion on their legal rights and options available. Those interested can contact him at 877-247-4292 or 212-983-9330 (Ext. 1310).

The firm has set a critical deadline of August 12, 2025, for potential lead plaintiffs wishing to take part in a federal securities class action against 3D Systems. This action arises from allegations claiming that the company and its executives might have breached federal securities laws through misleading statements and failure to disclose detrimental factors affecting the business.

Allegations and Results

According to the complaint, significant issues have emerged wherein 3D Systems allegedly downplayed the adverse effects of decreased customer spending on its operations while overstating its resilience amidst challenging industry conditions. Furthermore, updates regarding milestone criteria in the United Partnership appeared to have negatively impacted revenues from the company’s Regenerative Medicine Program. Consequently, the public statements made by 3D Systems were found to be materially misleading throughout the pertinent periods.

The situation escalated on March 26, 2025, when 3D Systems released its financial outcomes for the fourth quarter (Q4) and the entire fiscal year of 2024. Notably, the company's non-GAAP earnings per share reported was -$0.19, falling short of expectations by $0.08. Moreover, Q4 sales revenue was documented at $111 million, marking a decline of 3.4% year-over-year and missing estimates by $4.17 million. For the overall fiscal year, sales dropped to $440.1 million, indicating a 10% decrease largely attributed to a slump in demand engendered by macroeconomic challenges.

The announcement also highlighted a steep $9 million revenue reduction in Q4, linked to adjustments in accounting estimates for the Regenerative Medicine program. As a direct consequence of these disclosures, the company's stock price plummeted by $0.57, which is a significant decline of 20.96%, to close at $2.15 on March 27, 2025. Subsequently, on May 12, 2025, another press release revealed disappointing financials for the first quarter (Q1) of 2025, causing additional market erosion. The reported revenue for Q1 was $94.5 million, down 8% year-over-year, accompanied by a net loss of $37 million and an adjusted EBITDA loss of $23.9 million. The firm withdrew its revenue guidance for the full year 2025, citing continued consumer spending pauses and broader macroeconomic instability.

Enlist Your Rights

As the litigation unfolds, it is vital for affected shareholders to take action and potentially become lead plaintiffs in the class action. This role will involve directing the litigation on behalf of all affected investors, ensuring their collective voice is heard in the legal arena. Interested individuals can choose to engage or remain passive members within the class.

Faruqi & Faruqi, LLP is also reaching out to anyone with pertinent information regarding 3D Systems’ actions, including whistleblowers and former employees, to aid in the investigation. Investors looking for more information about the class action case can visit Faruqi & Faruqi’s dedicated page.

Faruqi & Faruqi, LLP has a long-standing reputation for advocating for investors, having recovered hundreds of millions of dollars since its inception in 1995. With offices located across New York, Pennsylvania, California, and Georgia, the firm is committed to ensuring that investor rights are upheld in the face of corporate mismanagement and deceit. For further updates, follow Faruqi & Faruqi on LinkedIn, X, or Facebook.

For inquiries or to discuss your case confidentially, you can reach out to Faruqi & Faruqi directly at the provided contact numbers. Remember that all communications will remain strictly confidential.

Conclusion

The evolving situation surrounding 3D Systems Corporation serves as a reminder of the importance of corporate transparency and accountability. Investors who have faced losses during this timeframe may find viable legal recourse through participation in the ongoing class action, and early engagement could lead to a more favorable outcome in safeguarding their financial interests.