Introduction to the 3D Systems Class Action Lawsuit
The 3D Systems class action lawsuit has rocked the investment community. The company’s stock took a dramatic 21% dive after disappointing financial results came out in March 2025. Our team has monitored this unfolding story while investors voice their concerns about statements they believe artificially boosted the company’s stock value.
The current legal battle is not 3D Systems’ first brush with shareholder litigation. A previous class action covered investors who bought shares between October 29, 2013, and October 22, 2014.
During this period, the stock dropped about 15% in just one day. Another lawsuit emerged in April when plaintiff Troy Kehoe filed a 3D Systems class action lawsuit.
He represented investors who purchased securities between May 6, 2020, and March 1, 2021. The stock price tumbled $7.62 per share (almost 20%) in a single day during this time. In this piece, we want to get into the current lawsuit’s allegations, explore the legal hurdles plaintiffs must overcome, and understand what this means to affected investors.
Please see the various investor resources below for an additional wealth of information.
3D Systems faces investor lawsuit over misleading financial disclosures
Several law firms sued 3D Systems Corporation in June 2025. They claimed the company misled investors between August 13, 2024, and May 12, 2025. These legal complaints focused on two key allegations that led to major investor losses.
The lawsuits claimed 3D Systems downplayed how reduced customer spending affected its business. The company painted a false picture of strength during tough market conditions. Customer spending had dropped across the industry, yet the company managed to keep an optimistic public image. They talked about “sequential recovery and continued momentum” in their customer pipeline.
The plaintiffs also claimed the company hid important information about its partnership with United Therapeutics Corporation. Changes to milestone criteria would hurt revenue from its Regenerative Medicine Program. This partnership aimed to 3D print human lungs and included new “in vivo human decedent testing protocols”.
Reality started surfacing on March 26, 2025. 3D Systems announced poor fourth-quarter 2024 results. The company missed analyst expectations with a non-GAAP loss of $0.19 per share instead of the expected $0.11. Sales revenue dropped to $111 million, showing a 3.4% decline from the previous year. The company also revealed an $8.70 million revenue cut due to “refinement of milestone recognition criteria” in its Regenerative Medicine program. The stock price then fell $0.57 per share, dropping 20.96%.
Things got worse on May 12, 2025. 3D Systems reported disappointing first-quarter 2025 results and pulled back its full-year guidance. They blamed ongoing weakness in customer spending. The stock fell another 26.6% and closed at $1.87 per share on May 13, 2025.
If you suffered substantial losses and wish to serve as lead plaintiff of the 3D Systems class action lawsuit, or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at tmiles@timmileslaw.com. They sought compensation for investors who lost money due to these alleged false statements. The complaints stated that 3D Systems’ public statements were “materially false and misleading” throughout this period.
Plaintiffs must overcome legal hurdles under PSLRA
The 3D Systems class action lawsuit lead plaintiffs must overcome major legal barriers set by the Private Securities Litigation Reform Act (PSLRA). Congress passed this law in 1995 to stop baseless securities lawsuits.
Plaintiffs have several requirements to meet. They need to point out each misleading statement and explain why it misled investors. This means they must specifically identify false statements or omissions by 3D Systems’ executives.
The Supreme Court made this clearer in Macquarie Infrastructure Corp. v. Moab Partners by ruling that simple omissions don’t count unless they make other statements misleading.
The next challenge involves proving that the hidden or incorrect information was material enough to affect an investor’s decision to trade 3D Systems stock. Courts look at whether this information would have changed the overall picture available to investors.
Proving scienter presents another big hurdle. Plaintiffs must show that 3D Systems’ executives intended to deceive or acted with extreme recklessness. The PSLRA requires specific facts that strongly suggest each defendant had this state of mind. Each executive’s intent must be proven separately – one person’s mindset doesn’t transfer to others.
The plaintiffs must also prove loss causation by linking the alleged false statements to their financial losses. This usually means showing how misleading statements artificially boosted 3D Systems’ stock price, which then fell when the truth came out. The timing of these revelations and stock price changes will play a vital role in proving this element.
The PSLRA also blocks discovery until after any motion to dismiss gets resolved. This prevents plaintiffs from using expensive discovery tactics to push defendants toward settlements.
Court evaluates class certification and lead plaintiff eligibility
The court needs to review two key procedural matters before the 3D Systems class action lawsuit can go to trial: class certification and lead plaintiff appointment.
Plaintiffs must prove several things to get class certification from a judge. They need to show how 3D Systems’ actions harmed them and that at least 40 other people faced similar harm. The class of affected investors needs clear definition. Their individual cases must represent all potential plaintiffs’ claims well.
The PSLRA changed how lead plaintiffs get picked, replacing the old “first-come, first-served” approach. Any investor who bought 3D Systems securities between August 13, 2024, and May 12, 2025 can now ask to be lead plaintiff. The deadline to apply is August 12, 2025 – 60 days after the first notice went public.
The court picks the lead plaintiff based on who has “the largest financial interest” at stake. This varies by case. Some court-picked lead plaintiffs lost millions, while losses of tens of thousands are enough in smaller cases. The court also checks if the applicant meets the “typicality” and “adequacy” rules under Federal Rule 23.
Institutional investors now lead about half of all new federal securities class actions. Research shows these cases tend to get bigger settlements and pay less in attorney fees compared to individual-led cases.
The lead plaintiff becomes the class representative and works closely with attorneys to make key decisions throughout the case. They usually get a bigger share of any settlement or judgment than other class members.
The 3D Systems lawsuit has not certified any class yet. The court will review all factors and could deny certification, grant it as asked, certify a shorter class period, or create member sub-classes.
Conclusion
The 3D Systems class action lawsuit adds another chapter to the company’s history of shareholder disputes. This case is different because it focuses on misleading financial disclosures and changes in partnership milestones.
The stock price dropped by a lot – falling 21% after March announcements and another 26.6% after May’s poor results. These dramatic drops show why investors feel cheated.
The plaintiffs have a tough road ahead under the PSLRA’s strict rules. They need to clear several legal barriers to recover damages.
They must prove the issues were important, show intentional wrongdoing, and establish how the losses happened. The automatic discovery stay makes things harder since they can’t access internal documents until after any motion to dismiss.
The court will soon decide on class certification and lead plaintiff appointment, which will shape how this case moves forward. Anyone who wants to be a lead plaintiff needs to act fast as the August 12, 2025 deadline is coming up soon. Research shows that institutional investors often get bigger settlements, so they might have an edge.
This case shows the tension between companies staying positive and their duty to be honest when markets are tough. 3D Systems managed to keep an optimistic tone despite industry-wide spending cuts. This strategy ended up failing when reality didn’t match their predictions.
Investors who lost money should watch this case closely and talk to financial advisors about ways to recover their losses. While nobody knows how it will turn out, the big drops in stock price point to major investor losses. This could lead to real compensation if the plaintiffs can overcome these legal hurdles.
Key Takeaways
Investors who purchased 3D Systems stock between August 2024 and May 2025 are pursuing legal action after the company’s shares plummeted over 40% following disappointing earnings and guidance withdrawals.
• 3D Systems faces fraud allegations for understating weak customer spending impacts while portraying false market resilience during the class period.
• The company failed to disclose that partnership milestone changes with United Therapeutics would reduce Regenerative Medicine revenue by $8.7 million.
• Plaintiffs must prove materiality, scienter, and loss causation under strict PSLRA requirements before recovering any damages from the lawsuit.
• Investors seeking lead plaintiff status must apply by August 12, 2025, with courts typically selecting those with the largest financial losses.
• This marks 3D Systems’ third major securities lawsuit in recent years, highlighting ongoing corporate disclosure and investor relations challenges.
The case underscores the critical importance of transparent corporate communications during market downturns, as overly optimistic statements can lead to significant legal and financial consequences when reality diverges from public projections.
Frequently Asked Questions about 3D Systems Lawsuit
Q1. What are the main allegations in the 3D Systems lawsuit? The 3D Systems class action lawsuit alleges that 3D Systems misled investors by understating the impact of weak customer spending on its business and failing to disclose that changes in partnership milestones would negatively affect revenue from its Regenerative Medicine Program.
Q2. What caused the significant drop in 3D Systems’ stock price? The stock price fell nearly 21% after disappointing fourth-quarter 2024 results were announced in March 2025, and dropped an additional 26.6% in May 2025 following poor first-quarter results and the withdrawal of full-year guidance.
Q3. What legal challenges do the plaintiffs face in this 3D Systems lawsuit? Plaintiffs must overcome hurdles under the PSLRA, including proving materiality of the alleged misstatements, demonstrating scienter (intent to deceive), and establishing loss causation linking the stock drop to the alleged fraud.
Q4. How can investors participate in the 3D Systems class action lawsuit? Investors who purchased 3D Systems securities between August 13, 2024, and May 12, 2025, can apply for lead plaintiff status by August 12, 2025. The court typically selects the applicant with the largest financial interest in the case outcome.
Q5. What potential compensation could affected investors receive? While the outcome is uncertain, the substantial stock price drops suggest significant investor losses that could potentially lead to meaningful compensation if the plaintiffs overcome the legal challenges. However, any potential recovery would depend on the court’s rulings and the case’s progression.
Contact Timothy L. Miles Today About an 3D Systems Class Action Lawsuit
If you suffered substantial losses and wish to serve as lead plaintiff of the 3D Systems class action lawsuit, or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at tmiles@timmileslaw.com. (24/7/365).
Timothy L. Miles, Esq.
Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr. #247
Mailbox #1091
Brentwood,TN 37027
Phone: (855) Tim-MLaw (855-846-6529)
Email: tmiles@timmileslaw.com
Website: www.classactionlawyertn.com
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