Investigation Launched into Profound Medical Corp. over Alleged Securities Law Violations
New York, NY – In a recent development, Levi & Korsinsky, a leading securities law firm, announced the initiation of an investigation into Profound Medical Corp. (NASDAQ: PROF) regarding potential securities laws violations. The investigation comes in the wake of Profound Medical’s disclosure of an accounting error that inflated revenue figures in the first quarter of 2024 by $472,000.
Background on Profound Medical Corp.
Profound Medical is a medical device company headquartered in Toronto, Canada. The company specializes in the development and commercialization of therapeutic applications of its TULSA-PRO transurethral ultrasound ablation technology. This technology is designed to provide targeted ablation of prostate tissue, offering a minimally invasive alternative to traditional surgical procedures for the treatment of localized prostate cancer and benign prostatic hyperplasia (BPH).
The Accounting Error and Its Impact
In a filing with the U.S. Securities and Exchange Commission (SEC) on March 7, 2025, Profound Medical revealed the error, which occurred during the preparation of its financial statements for the first quarter of 2024. The error led to an overstatement of revenue by $472,000, which, in turn, affected the company’s reported gross profit and net income for the period.
The error was identified during the company’s internal review process and was corrected in its financial statements for the second quarter of 2025, which were filed with the SEC on March 7, 2025. Profound Medical stated that it would restate its financial statements for the first quarter of 2025 to reflect the corrected figures.
Implications for Investors
The disclosure of the accounting error could have significant implications for Profound Medical’s investors. The overstated revenue figures may have influenced the company’s stock price, as investors may have relied on inaccurate financial information when making investment decisions. Additionally, the investigation launched by Levi & Korsinsky could lead to further financial and reputational damages for the company if securities laws violations are uncovered.
Impact on the Global Community
Beyond Profound Medical’s immediate investors, this incident could potentially have wider implications for the medical device industry and the healthcare sector as a whole. The incident highlights the importance of accurate financial reporting and the potential consequences of errors or misstatements. It also underscores the need for robust internal controls and effective auditing processes to maintain investor trust and confidence.
Conclusion
The investigation into Profound Medical Corp. and the disclosure of the accounting error serve as a reminder of the importance of accurate financial reporting and robust internal controls in the business world. As the healthcare sector continues to evolve and innovate, it is crucial that companies maintain the highest standards of transparency and integrity to ensure the trust and confidence of their investors and the global community.
- Profound Medical Corp. disclosed an accounting error that overstated revenue by $472,000 in the first quarter of 2024.
- The error was identified during the company’s internal review process and corrected in its financial statements for the second quarter of 2025.
- Levi & Korsinsky launched an investigation into possible securities laws violations.
- The incident could have significant implications for Profound Medical’s investors and could potentially impact the medical device industry and the healthcare sector as a whole.
