SHAREHOLDER ALERT

Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Inogen, Inc. of Class Action Lawsuit and Upcoming Deadline - INGN - Seite 2

Throughout the Class Period, Defendants made materially false and misleading statements regarding Inogen's business, operational and compliance policies.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:  (i) Inogen was overstating the true size of the total addressable market ("TAM") for its portable oxygen concentrators, claiming it was upwards of 3 million people; (ii) Inogen was misstating the basis for its calculation of the TAM; (iii) Inogen was falsely attributing its sales growth to the strong sales acumen of its salesforce, when in reality it was due in large part to sales tactics designed to deceive its elderly customer base (including inducing them to purchase portable oxygen concentrators from Inogen at inflated prices by claiming that Medicare did not otherwise cover payment for such devices if obtained from other providers); (iv) as such, the growth in Inogen's domestic business-to-business sales to home medical equipment ("HME") providers was inflated, unsustainable and was eroding direct-to-consumer sales; (v) very little of Inogen's business was actually coming from the more stable Medicare market; and (vi) as a result, Inogen's public statements were materially false and misleading at all relevant times.

On November 6, 2018, Inogen released its third quarter 2018 financial results after the market closed.  While the quarterly financial results were in line with expectations, defendants revealed that the growth in domestic business-to-business sales to HME providers had slowed precipitously to 32% from 56% in the second quarter of 2018.  Inogen also reduced its guidance for fiscal 2018 adjusted EBITDA to $60 to $62 million from $65 to $69 million.

Following these disclosures, the price of Inogen common stock fell $37.44 per share, or over 19%, to close at $155.86 per share on heavy volume of 2.64 million shares traded, almost five times the average daily volume over the preceding five trading days.

Then, on February 26, 2019, after the close of trading, Inogen issued a press release announcing its fourth quarter and fiscal year 2018 ("4Q18" and "FY18") financial results for the period ended December 31, 2018 and conducted a conference call with investors and stock analysts to discuss its business metrics and financial prospects.  During the conference call, defendant Scott Wilkinson backtracked on the Company's prior TAM estimate of 2.5 to 3 million patients, and blamed Inogen's poor "domestic business-to-business sales" on "order activity [that] slow[ed] from one national home care provider in the fourth quarter of 2018."  Inogen also reported that its 4Q18 non-GAAP EBITDA was $10.5 million, 9.5% lower than fiscal 2017, and significantly reduced its previously provided fiscal 2019 net income guidance, blaming in large part the decline in its own stock price.