NEW YORK, March 16, 2016 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential wrongdoing at Osiris Therapeutics, Inc. ("Osiris" or the "Company") (NASDAQ: OSIR).
The investigation focuses on whether the Company's Board of Directors and its officers committed mismanagement and breached their fiduciary duties by failing to maintain an effective system of internal controls. On November 16, 2015, the Company filed a quarterly report on Form 10-Q (the "3Q 10-Q") with the SEC announcing that in connection with preparing the Company's financial statements for the quarter ended September 30, 2015, the Company reviewed the timing of revenue recognition under contracts with its distributors.
On November 20, 2015, the Company filed a Form 8-K announcing that its previously issued financials for the first and second quarters of 2015 should no longer be relied upon and the Company would need to restate its previously issued interim financial statements for the first quarter and second quarter of 2015.
Then, on December 17, 2015, the Company announced that it had received a notice from its independent registered public accounting firm BDO USA, LLP ("BDO") that it intended to resign. The Company further disclosed that during preparation for filing of the Company's 3Q 10-Q, the Company and BDO had a disagreement about the timing of revenue recognition under certain distributor contracts and about the Company's related internal controls over financial reporting.
On March 15, 2016, the Company filed a Form 8-K announcing that it had notified NASDAQ of the Company's anticipated failure to timely file its annual report on Form 10-K for the year ended December 31, 2015 by the prescribed due date or within the 15-day extension period provided by SEC rules. As a result, the Company expects to receive a written notice of deficiency for noncompliance with NASDAQ listing requirements. The Form 8-K also disclosed that on March 14, 2016, the Audit Committee, in consultation with management, concluded that the Company's unaudited interim and audited annual financial statements previously issued for 2014 and its unaudited interim financial statements previously issued for the three and nine months ended September 30, 2015 should not be relied upon and would have to be restated due to errors identified in such financial statements related to the timing of revenue recognition under contracts with distributors. The previously issued financial statements that should not be relied upon were included in the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, its Annual Report on Form 10-K for the year ended December 31, 2014 and its Quarterly Report on Form 10-Q for the quarters ended March 31, 2015, June 30, 2015 and September 30, 2015. The Company also disclosed that it had received a subpoena from the SEC, which is conducting a non-public investigation concerning the company's historic practices.
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If you currently own Osiris stock and would like to discuss your legal rights, please visit www.faruqilaw.com/OSIR. You can also contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Osiris's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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