Investors Sue Picard Medical for Hiding Stock Promotion Scheme

A class action lawsuit was filed against Picard Medical (PMI) on February 2, 2026.

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Plaintiffs in the federal securities class action allege that they acquired Picard stock at artificially inflated prices between September 2, 2025, and October 31, 2025, known as the “Class Period”. They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. To learn whether you may be eligible for a recovery under this securities lawsuit, click here.

Company Background

Picard is a medical device company. It designs, manufactures, produces, supplies, markets and sells relevant devices. Among other things, Picard makes the SynCardia Total Artificial Heart (STAH) available to patients through its wholly owned subsidiary, SynCardia Systems, LLC.

The Tucson, Arizona-based Company does business in the United States, Europe and elsewhere overseas. Incorporated in 2021, Picard began trading publicly last August. It has 75 employees.

Why are Picard Shareholders Taking Action?

Picard and four of its senior officers and/or directors (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding important information about the company’s business practices during the Class Period.

Specifically, they are accused of omitting truthful information about activity affecting its stock performance from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Picard stock to trade at artificially inflated prices during the time in question.

As detailed in the complaint, investors began to learn the truth when the company’s stock “abruptly crashed by approximately 70%” during aftermarket trading hours on October 23, 2025. That same day, the founder of a “leading forensic financial research authority” reiterated prior social media statements identifying “the Picard IPO and subsequent pump and dump as a fraud.”

However, the complaint alleges that the company itself did not issue an official statement warning shareholders about the “volatility of its stock” until October 24, 2025.

Taking a Closer Look

As alleged, the company and/or Individual Defendants repeatedly made false and misleading public statements throughout the Class Period.

In an IPO prospectus filed with the SEC at the beginning of the Class Period, for instance, the company stated in relevant part: “The SynCardia TAH remains the only approved total artificial heart in the United States and Canada for the BTT indication. Carmat SA, a French company, recently obtained the CE mark for its Aeson TAH device in Europe. Beyond the SynCardia TAH and the Aeson device, there are no other artificial hearts approved for commercial use in any market.”

In the same document, the company also stated in relevant part: “While, to date, there are no head-to-head trials to compare total artificial hearts to each other, we believe that based on our technology, intellectual property, know-how, and extensive human clinical experience, we have significant advantages over other companies developing other TAH products.”

Then, in a September 15, 2025 press release, Picard’s CEO (an Individual Defendant) stated: “Our second quarter results reflect strong sales growth for the SynCardia total artificial heart. We achieved over 200% revenue growth year-over-year, strengthened our operating profile, and successfully completed our IPO, the proceeds of which provide us with the capital to advance development of our next-generation fully implantable heart and expand access to the SynCardia platform globally.”

Finally, in a proxy statement filed with the SEC on September 18, 2025, the company stated in relevant part: “Our Board, the Compensation Committee of the Board (the “Committee”) and management believe that the effective use of incentive awards is vital to our ability to help retain and incentivize our employees, officers, directors, consultants, and advisors. In addition, our future success depends, in large part, upon our ability to maintain a competitive position in attracting, retaining, and motivating key personnel. We believe that the Amended Incentive Plan is essential to permit our management to continue to provide long-term, equity-based incentives to present and future employees, consultants, and directors.”

Actions You May Take

If you have purchased the company’s stock during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole. To learn more about your options, click here.

The deadline to file for lead plaintiff in this class action is April 3, 2026.

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