PHILADELPHIA–(BUSINESS WIRE)–Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against RTI Surgical Holdings, Inc. (“RTI Surgical” or the “Company”) (NASDAQ: RTIX) on behalf of investors who purchased shares of the Company’s stock between March 7, 2016 and March 16, 2020, inclusive (the “Class Period”).
Investors who suffered an investment loss in excess of $50,000 investing in RTI Surgical’s securities are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585 or (888) 715 – 1740, or online at http://kaskelalaw.com/case/rti-surgical/, to discuss this action and their legal rights and options.
On March 16, 2020, RTI Surgical disclosed that its Audit Committee was “in the process of conducting an internal investigation of current and prior period matters relating to the Company’s revenue recognition practices regarding the timing of revenue with respect to certain contractual arrangements, primarily with OEM customers, including the accounting treatment, financial reporting and internal controls related to such arrangements.” Additionally, the Company disclosed that the investigation “was precipitated by an ongoing SEC investigation related to the periods 2014 through 2016.”
Following this news, shares of the Company’s stock declined $0.76 per share, or over 27% in value, to close on March 18, 2020 at $1.99 per share.
The complaint alleges that RTI Surgical made a series of false and misleading statements to investors during the Class Period, and failed to disclose that: (i) the Company inappropriately recognized revenues with respect to certain contractual arrangements, including other equipment manufacturer customers; and (ii) the Company’s internal controls over financial reporting were not effective.
IMPORTANT DEADLINE: Investors who purchased RTI Surgical’s securities during the Class Period may, no later than May 22, 2020, seek to be appointed as a lead plaintiff shareholders representative in the action.
Investors are encouraged to contact Kaskela Law LLC for additional information about this action. Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.