Lawsuit filed for Investors who lost money with shares of 3D Systems Corporation (NYSE: DDD)

An investor, who purchased shares of 3D Systems Corporation (NYSE: DDD), filed a lawsuit over alleged violations of Federal Securities Laws by 3D Systems Corporation in connection with certain allegedly false and misleading statements.

Investors who purchased shares of 3D Systems Corporation (NYSE: DDD) have certain options and for certain investors are short and strict deadlines running. Deadline: August 12, 2025. NYSE: DDD investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Rock Hill, SC based 3D Systems Corporation provides 3D printing and digital manufacturing solutions in North and South America, Europe, the Middle East, Africa, the Asia Pacific, and Oceania. The Company earns revenue from the sale of products and services through its two operating segments: Healthcare Solutions and Industrial Solutions. The Healthcare Solutions segment includes dental, medical devices, personalized health services, and regenerative medicine (the "Regenerative Medicine Program"). The Regenerative Medicine Program focuses on "the use of additive manufacturing for human organ transplantation."

Since 2018, 3D Systems Corporation has partnered with the biotechnology company United Therapeutics Corporation ("United") "with a long-term goal of developing the capability to 3D print lungs that will allow patients with end-stage lung disease to receive transplants that will enable them to enjoy long and active lives" (the "United Partnership"). The terms of the United Partnership include specific "milestone criteria"-i.e., requirements that must be met for a stage in a development process to be considered completed. In late 2024, 3D Systems updated the United Partnership's milestone criteria in response to changes in testing methodology.
The Company considers milestone criteria (and any updates thereto) when accounting for recognized revenue from the United Partnership. Specifically, the Company earns milestone payments based upon the achievement of agreed-upon contract objectives (i.e. milestones). Because these payments are contingent on future events, they generally represent a form of variable consideration. Under Accounting Standards Codification 606-10-32-5, the revenue recognition standard-a uniform framework for recognizing revenue from contracts with customers-requires an entity to estimate the amount of variable consideration to which it will be entitled under a contract. Accordingly, as the United Partnership milestone criteria are updated, the Company must also update its estimates of the timing and probability that it will receive milestone payments when accounting for recognized revenue.
Over the past several years, reduced customer spending has resulted in weakened sales across the 3D printing industry. Nonetheless, 3D Systems has consistently maintained that, "despite a challenging operating environment," it "remains optimistic about the future" given its "sequential recovery and continued momentum in [its] robust customer pipeline." Further, the Company has touted that "with its new products now gaining traction in the market, [its] focus is increasingly centered on driving gross margin expansion and operating expense improvements in the face of continuing uncertainty in the global markets."

In March 2025, 3D Systems Corporation released its full-year 2025 guidance. Among other items, the Company projected "revenue within the range of $420 million to $435 million, representing essentially flat to modest growth," "[n]on-GAAP Gross Profit Margin within the range of 37% to 39%," "[n]on-GAAP Operating Expense within the range of $200 million to $220 million," and "adjusted EBITDA to be break even or better in Q4 2025."

On March 26, 2025, 3D Systems Corporation issued a press release announcing its financial results for the fourth quarter ("Q4") and full-year 2024. 3D Systems Corporation (NYSE: DDD) reported that its annual Total Revenue declined from $488.06 million in 2023 to $440.12 million in 2024, and that its Net Loss declined from $362.68 million in 2023 to $255.59 million in 2024.
Among other items, 3D Systems reported Q4 non-GAAP earnings-per-share of -$0.19, missing consensus estimates by $0.08 per share, and sales revenue of $111 million, representing a -3.4% year-over-year decline and missing consensus estimates by $4.17 million. Further, for full-year 2024, the Company reported sales of $440.1 million, a decrease of 10% compared to the prior year, driven by "lower hardware systems sales due to macroeconomic factors that are negatively impacting demand." Finally, 3D systems reported a "$9 million revenue reduction in Q4 driven by a change in accounting estimates for [the Company's] Regenerative Medicine program." The Company disclosed that "[t]his change in estimate [was] related to the now anticipated use of pre-clinical human decedent testing[,] [. . .] which led to refinement of the milestone technical criteria."

Then, after the market closed on May 12, 2025, 3D Systems Corporation issued a press release announcing its financial results for the first quarter ("Q1") of 2025. Among other items, 3D systems reported: 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 Q1 2024; an adjusted loss of $0.21 per share, deeper than consensus estimates of a loss of $0.14 per share; and adjusted EBITDA of a loss of $23.9 million, deepening from a $20.1 million loss in Q1 2024. The Company attributed its disappointing results, in part, to a decline in material sales, mostly due to inventory management issues in the dental portion of its Healthcare Solutions segment. 3D Systems also announced that it was withdrawing its full-year 2025 outlook, citing prolonged softness in customer capital spending and macroeconomic uncertainty.

On May 14, 2025, an analyst from Seeking Alpha stated that he was "skeptical that [3D Systems] can transition to profitability in the near term" and suggested that "even after a significant price drop, the stock isn't a bargain given shrinking revenues, lack of profitability, and low investor interest in the sector."

Shares of 3D Systems Corporation (NYSE: DDD) declined from $4.85 per share on February 14, 2025, to as low as $1.48 per share on June 02, 2025.

The plaintiff claims that between August 13, 2024 and May 12, 2025, the Defendants made false and/or misleading statements and/or failed to disclose that 3D Systems had understated the impact of weakened customer spending on the Company's business, while overstating its resilience in challenging industry conditions, that in addition, the updated milestone criteria in the United Partnership would negatively impact the Company's Regenerative Medicine Program revenue, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of 3D Systems Corporation (NYSE: DDD) 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.