NYSE MKT
TRXC

TransEnterix, Inc.

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against TransEnterix, Inc. (NYSE MKT: TRXC)

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Eastern District of North Carolina on behalf of all persons or entities that purchased the common stock of TransEnterix, Inc. (“TransEnterix” or the “Company”) (NYSE MKT: TRXC) between February 10, 2016 and May 10, 2016, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of TransEnterix during the Class Period, or purchased shares prior to the Class Period and still hold TransEnterix, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on on April 20, 2016, Defendants shocked investors when the Company revealed that the FDA notified TransEnterix on April 19, 2016 that the FDA had determined the SurgiBot “does not meet the criteria for substantial equivalence based upon the data and information submitted by TransEnterix in its 510(k) submission.”

Then, on May 10, 2016, the Company further shocked the market when it announced that it was “reprioritiz[ing] its near-term regulatory efforts” and shelving the SurgiBot.  Instead of pursuing approval and commercialization for the SurgiBot, which would require a new 510(k) submission, Defendants revealed the Company would now “focus [its] resources on the commercialization of and regulatory clearance for the ALF-X System.”  TransEnterix further stated that it would “delay any potential re-filing for the SurgiBot System” until after the Company could achieve 510(k) clearance for its other robotic surgical device, the ALF-X System (the “ALF-X”), despite the fact that it did not expect to submit a 510(k) for the ALF-X until the fourth quarter of 2016.  Defendants also revealed that TransEnterix had “taken actions to reduce headcount and investment related to the SurgiBot.”

On this news, shares of TransEnterix dropped over 10%, closing at $1.84 per share on May 11, 2016, on heavy trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than August 1, 2016.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

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