Lawsuit filed for Investors in shares of Butterfly Network, Inc. (NYSE: BFLY)

An investor, who purchased shares of Butterfly Network, Inc. (NYSE: BFLY), filed a lawsuit over alleged violations of Federal Securities Laws by Butterfly Network, Inc. f/k/a Longview Acquisition Corp..

Investors who purchased a significant amount of shares of Butterfly Network, Inc. (NYSE: BFLY) between February 16, 2021 and November 15, 2021, and/or held of Butterfly common stock as of the record date for the special meeting of shareholders held on February 12, 2021 to consider approval of the Merger, have certain options and for certain investors are short and strict deadlines running. Deadline: April 18, 2022. NYSE: BFLY investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Guilford, CT based Butterfly Network, Inc., a digital health company, develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. Butterfly Network, Inc offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; and Butterfly iQ+, a point-of-care ultrasound imaging device that connects with a smart phone or tablet.
Between late 2019 and early 2020, a novel strain of the coronavirus disease, commonly referred to as COVID-19, became an ongoing global pandemic, with the outbreak first identified in Wuhan, China, in December 2019. The virus quickly spread to other countries, including the U.S., prompting state, federal, and private parties to enact various health and safety measures to halt the spread of the disease, which has since claimed millions of lives.
On November 20, 2020, almost one year into the ongoing COVID-19 pandemic, Butterfly Network, Inc issued a press release announcing that it had entered into a merger agreement with Longview. On the basis of the defective Proxy, on February 12, 2021, Longview shareholders voted to approve the Merger at a special shareholder meeting. Following the consummation of the Merger on February 16, 2021, Longview changed its name to "Butterfly Network, Inc." and Butterfly stock began trading on the New York Stock Exchange.

On November 15, 2021, Butterfly Network, Inc announced its financial results for the third quarter of 2021. In a press release, Butterfly Network, Inc 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 million to $62 million this year, significantly below the guidance it gave out in Q1 of $76 million to $80 million.

That same day, on an earnings call with investors and analysts to discuss the Company's financial results for the third quarter, Butterfly Network, Inc's CEO, Todd Fruchterman, stated that the Company's results were impacted by "healthcare logistical challenges, and doctor, nurse, and medical technician fatigue concurrent with COVID conditions and it's broad consequences."

Shares of Butterfly Network, Inc. (NYSE: BFLY) declined from $10.99 per share in early November 2021, to as low as $4.84 per share on January 28, 2022.

The plaintiff claims that between February 16, 2021 and November 15, 2021, the Proxy and Defendants made false and/or misleading statements and/or failed to disclose that Butterfly had overstated its post-Merger business and financial prospects, that notwithstanding the ongoing COVID-19 pandemic, Butterfly's financial projections failed to take into account the pandemic's broad consequences, which included healthcare logistical challenges, and medical personnel fatigue, that accordingly, Butterfly's gross margin levels and revenue projections were less sustainable than the Company had represented, that all the foregoing was reasonably likely to have a material negative impact on Butterfly's business and financial condition, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Butterfly Network, Inc. (NYSE: BFLY) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.