3D Systems Corp (NYSE:DDD), a leader in 3D printing solutions, has reached a settlement agreement to resolve multiple shareholder derivative lawsuits, as disclosed in a recent SEC filing. The agreement, which includes corporate governance reforms and the payment of $1.95 million in legal fees, awaits final court approval scheduled for October 21, 2024.
The South Carolina-based prepackaged software services company disclosed on Thursday that it had entered into a Stipulation and Agreement of Settlement on April 30, 2024, to conclude three related shareholder derivative actions and a stockholder inspection demand. The preliminary settlement received approval from the South Carolina Court of Common Pleas on July 11, 2024.
The proposed settlement terms involve the implementation of various corporate governance reforms aimed at enhancing the company's operational structure. Furthermore, the settlement stipulates the payment of shareholders' attorneys' fees and expenses, totaling $1.95 million. If the court grants final approval, the company's insurance carrier will cover the entire monetary component of the settlement.
In other recent news, 3D Systems has announced a strategic alliance with Precision Resource, aiming to advance metal additive manufacturing in sectors such as automotive, aerospace, and medical devices. As part of this partnership, Precision Resource plans to incorporate two 3D Systems DMP Flex (NASDAQ:FLEX) 350 Dual 3D printers into its AS9100-certified facility in Huntington Beach, California. This integration is set to complement Precision Resource's established production capabilities and expand its market reach.
In addition to this partnership, 3D Systems has secured a substantial contract in the digital dentistry market, estimated to be worth nearly a quarter-billion dollars through 2025. This contract, supporting the production of clear aligners, underscores 3D Systems' role as a primary supplier of 3D printing technology in the orthodontics sector.
Furthermore, 3D Systems has received FDA 510(k) clearance for its VSP PEEK Cranial Implant, a 3D-printed, patient-specific implant for cranial reconstruction. This clearance expands the use of the company's additive manufacturing solutions in the United States. The cranial reconstruction market is projected to grow, reaching $2.1 billion by 2030, offering a solid base for 3D Systems to further develop its PEEK product portfolio.
Lastly, 3D Systems is diversifying into the production of night guards and is seeking regulatory clearances for its innovative dentures. The company expects FDA clearance for its denture solution in the second half of 2024. These are the most recent developments for 3D Systems.
InvestingPro Insights
As 3D Systems Corp (NYSE:DDD) navigates its legal settlements, investors may find additional context through real-time data and analysis. According to InvestingPro, the company's market cap stands at $533.14 million, reflecting its standing in the market. Despite a challenging revenue trend with a 9.29% decline over the last twelve months as of Q4 2023, the firm maintains a gross profit margin of 40.73%, indicating a strong ability to retain earnings above the cost of goods sold.
InvestingPro Tips suggest that while 3D Systems is expected to see net income growth this year, the company is also experiencing high volatility in stock price movements and a significant cash burn rate. Additionally, analysts are not expecting profitability this year, which is consistent with the company's P/E ratio of -1.41, indicating investor concerns about earnings potential. However, with liquid assets exceeding short-term obligations, the company appears to have a cushion against immediate financial pressures.
For those considering an investment in 3D Systems, there are over 12 additional InvestingPro Tips available that could provide further insight into the company's financial health and market position. To explore these tips and gain a deeper understanding of 3D Systems' potential, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at https://www.investing.com/pro/DDD. This could be an opportune moment to assess the company's prospects as it works to resolve its legal challenges and strengthen its corporate governance.
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