Zimmer Biomet(US:ZBH) Prnewswire·2026-01-27 23:28Core Viewpoint - Hagens Berman is investigating Zimmer Biomet Holdings, Inc. (ZBH) due to concerns over the company's "high confidence" assurances regarding its 2025 revenue targets following a significant stock decline and reduced revenue guidance [1][4]. Group 1: Investigation Focus - The investigation aims to determine if Zimmer Biomet's senior management misled investors about the stability of its international business, particularly after the company reported distributor order cancellations in emerging markets and a revenue miss in Latin America [2][4]. - The investigation is centered on whether Zimmer Biomet violated federal securities laws by providing overly optimistic guidance while concealing operational disruptions [4]. Group 2: Management Statements and Market Reaction - On August 7, 2025, during the Q2 earnings call, management expressed "very high" confidence in achieving a year-over-year organic revenue growth forecast of 3.5% to 4.5%, which contributed to a 7% increase in share price that day [7]. - Following the November 5, 2025 earnings report, which revealed a lower-than-expected organic revenue growth of 5% and a revised forecast of 4%, the stock price fell by 15% as the CEO acknowledged the need for more measured external commentary [7]. Group 3: Operational Challenges - The November report indicated that emerging markets posed a headwind to growth, with significant distributor order cancellations primarily in the Middle East and Eastern Europe, and a substantial revenue miss in Latin America [7]. - The company announced leadership and governance changes in some international businesses to address the challenges faced throughout 2025 [7].