3D Systems Class Action Lawsuit: The Optimum Investor Guide to the Process Under the PSLRA [2025]

Understanding the 3D Systems Class Action Lawsuit

The 3D Systems Class Action Lawsuit is a significant legal proceeding aimed at representing individuals who purchased or acquired securities from 3D Systems Corporation (NYSE: DDD) during a specific timeframe, notably from August 13, 2024, to May 12, 2025. This lawsuit, officially titled Herbermann v. 3D Systems Corporation, No. 25-cv-00734 (D. Del.), accuses the company and several of its top executives of breaching theSecurities Exchange Act of 1934.

Investors who have experienced substantial financial losses during this period may be eligible to serve as lead plaintiffs in the 3D Systems Class Action Lawsuit. If you believe you qualify or have questions regarding your rights as a shareholder, it is advisable to reach out to legal professionals in securities law. The deadline for filing lead plaintiff motions in this case is August 12, 2025.

If you suffered substantial losses and wish to serve as lead plaintiff of the 3D Systems 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.

Lead Plaintiff Deadlines

Securities fraud class action lawsuits represent a significant legal mechanism for investors who have suffered financial losses due to corporate malfeasance. These lawsuits, such as the 3D Systems lawsuit, typically arise when a company or its executives engage in deceptive practices that mislead investors about the company’s financial health or prospect.

The goal of such litigation is to hold the perpetrators accountable and secure compensation for the affected investors. Securities fraud encompasses a range of activities, including insider trading, false financial statements, and misleading disclosures, all of which can severely impact market integrity and investor confidence.

In a class action context, a group of investors collectively brings the lawsuit against the defendant, which could be a corporation or its executives. This collective approach is particularly powerful in the securities realm because it allows individual investors, who might not have the resources to pursue litigation on their own, to band together and seek justice.

The class action mechanism ensures that the legal process is efficient and that the interests of all affected investors are represented.

The complexity of securities fraud class action lawsuits requires plaintiffs to navigate a labyrinth of legal standards and procedural hurdles. One of the most significant challenges is surviving a motion to dismiss, a legal maneuver by the defendants to have the case thrown out before it reaches trial.

Understanding the nuances of these lawsuits is crucial for any stakeholder involved, as it sets the stage for the strategic decisions that will follow. In the case of the 3D Systems class action lawsuit, these elements come into sharp focus, highlighting the importance of a well-crafted legal strategy.

The 3D Systems class action lawsuit alleges that throughout the class period, the defendants made false and misleading statements and failed to disclose critical information, including:

• Understated Impact of Customer Spending: The lawsuit claims that 3D Systems downplayed the negative effects of reduced customer spending on its business while exaggerating its resilience in challenging market conditions.
• Negative Impact on Revenue: It is further alleged that changes in the milestone criteria of 3D Systems’ partnership with United Therapeutics Corporation would adversely affect the revenue generated from its Regenerative Medicine Program.

On March 26, 2025, 3D Systems announced its financial results for the fourth quarter and full year of 2024, revealing:

• A non-GAAP earnings-per-share (EPS) of -$0.19, which fell short of consensus estimates by $0.08 per share.
• Sales revenue of $111 million, reflecting a 3.4% decline year-over-year and missing consensus estimates by $4.17 million.
• A full-year sales total of $440.1 million, representing a 10% decrease compared to the previous year, attributed to lower hardware system sales due to adverse macroeconomic factors.

Following this announcement, the stock price of 3D Systems plummeted nearly 21%. On May 12, 2025, the company reported its first-quarter financial results for 2025, which included:

• Revenue of $94.5 million, down 8% year-over-year and missing consensus estimates of $99.5 million.
• A net loss of $37 million, or $0.28 per share, more than doubling the $16 million loss reported in the first quarter of 2024.

These revelations led to a further decline in the stock price, which fell over 26% following the announcement.

Who is Impacted by the 3D Systems Class Action Lawsuit?

The 3D Systems class action lawsuit primarily affects investors who purchased shares during the specified class period and subsequently suffered financial losses. If you invested in 3D Systems during this timeframe, you may be part of the affected class and could be eligible for compensation if the lawsuit is successful.

Identifying your eligibility is crucial for understanding your rights and potential benefits. The 3D Systems lawsuit may involve specific timeframes and circumstances that define the class of investors who can participate. Staying informed about the lawsuit’s progress is essential for anyone connected to 3D Systems, including executives, board members, and other stakeholders.

The Legal Process of Securities Class Actions

The 3D Systems class action lawsuit, like most securities fraud cases, may take approximately 2.5 to 4 years to reach a resolution. This timeline illustrates just one aspect of the complex legal proceedings involved.

Companies often face securities fraud class actions when negative news causes a significant drop in their stock price. These cases can make it challenging for investors to obtain compensation. The 3D Systems lawsuit aims to recover damages collectively rather than through individual claims.

Steps in the Legal Process

1. Filing the Original Complaint: Multiple law firms may file similar complaints against the same defendants in securities class actions. The first lawsuit triggers a 60-day deadline for shareholders to step forward as lead plaintiffs.
2. Lead Plaintiff Selection: Investors must file motions to request appointment as lead plaintiff within 60 days of the first notice. The court typically appoints the investor with the largest financial stake in the litigation.
3. Motion to Dismiss: Defendants often file a motion to dismiss the united complaint, which can halt discovery during this period. Courts dismiss approximately 43% of securities class actions at this stage.
4. Discovery and Evidence Gathering: If the court denies the motion to dismiss, the discovery process begins, involving document exchanges, interrogatories, and depositions.
5. Class Certification: Plaintiffs must prove elements such as numerosity, commonality, typicality, and adequacy of representation to certify a class.
6. Summary Judgment and Trial Preparation: Defendants may file for summary judgment based on undisputed facts after discovery ends, providing another opportunity to end the case before trial.

Challenges Faced by Plaintiffs in the 3D Systems Lawsuit

Plaintiffs in the 3D Systems class action lawsuit must navigate several significant challenges to succeed in their case. The Private Securities Litigation Reform Act (PSLRA) and court interpretations create various hurdles.

Proving Scienter and Intent

The PSLRA imposes a stringent standard requiring plaintiffs to demonstrate a “strong inference” of scienter, which refers to knowledge of wrongdoing or reckless disregard for the truth. Courts scrutinize these claims closely, often relying on confidential witnesses to support allegations of intent.

Establishing Loss Causation

Plaintiffs must establish a direct link between the alleged misrepresentations and economic losses. This typically involves identifying “corrective disclosures” that revealed the truth and caused stock prices to decline.

Demonstrating Price Impact

Defendants can challenge class certification by proving a lack of price impact, showing that the alleged misstatements did not affect the stock price. The Supreme Court’s decision in Goldman Sachs v. Arkansas Teacher Retirement System requires courts to evaluate whether generic statements could genuinely influence stock prices.

Meeting Class Certification Standards

Class certification in the 3D Systems class action lawsuit will be a critical battleground, as courts will conduct a rigorous analysis of Rule 23 requirements. Hard evidence, rather than mere allegations, must demonstrate that these requirements are met.

Resolution of Securities Class Actions

Securities class actions rarely proceed to trial, with settlement being the most common resolution method. Most cases that survive a motion to dismiss ultimately reach a settlement agreement.

The Role of Mediation

Mediation in securities class actions differs from other legal proceedings due to the substantial stakes involved. Independent mediators facilitate discussions between both parties, helping them reach a mutually acceptable agreement.

Settlement Process and Court Approval

Once a settlement is reached, the PSLRA mandates specific notifications to class members, detailing the proposed distribution amount, potential case outcomes, attorneys’ fees, and other relevant information. Class members can file objections or opt out after receiving notification.

Claims Administration and Payout Timeline

If a settlement is approved, an independent claims administrator will manage the distribution of settlement funds. This process typically takes two to three years to conclude after filing, with administrators potentially making multiple distributions to cover late claims.

Steps to Take to Protect Your Interests