Ousted Cutera (NASDAQ:CUTR) CEO David Mowry and executive chairman Daniel Plants on Wednesday said they had filed a lawsuit against the directors of the medical device maker in connection with their termination.
Shares of CUTR earlier slumped 28.2% to close at $19.44, after the company in the morning announced the axing of Mowry and Plants and withdrew its 2023 outlook.
Mowry and Plants in a statement said their lawsuit “calls for the (CUTR) Board to amend or waive the deadline under the Company’s bylaws by which all Cutera shareholders must nominate candidates for election to the Board at the 2023 Annual Meeting of Stockholders.”
The lawsuit was filed in the a court in Delaware against CUTR directors Gregory Barrett, Sheila Hopkins, Timothy O’Shea, Juliane Park and Janet Widmann.
In a separate statement, RTW Investments – which manages funds holding a ~9.3% stake in CUTR – said that it was in favor of the company holding its previously-called special shareholders meeting for the purpose of reconstituting the board.
RTW Investments added that it was “concerned about the events that have transpired at the Company this past week, particularly with respect to the Board’s removal of David Mowry” as CEO.
Cutera (CUTR) stock was slightly higher by 1.2% to $19.68 after hours.