LOS ANGELES, April 14, 2021 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM"), a leading national shareholder rights law firm, announces that on March 24, 2021, the Honorable Larry Alan Burns of the United States District Court for the Southern District of California issued a ruling denying-in-part defendants' motions to dismiss in Derr v. Ra Medical Systems, Inc. GPM serves as the court-appointed Lead Counsel for a putative class of investors that purchased or otherwise acquired the securities of Ra Medical Systems, Inc. ("Ra Medical" or the "Company") (NYSE: RMED): (a) pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's September 2018 initial public offering ("IPO" or the "Offering"); and/or (b) between September 27, 2018 and November 27, 2019, inclusive (the "Class Period"). This action seeks to recover losses suffered by Ra Medical investors arising from defendants' alleged violations of the federal securities laws.
Investors that purchased Ra Medical securities pursuant to the IPO and/or during the Class Period are encouraged to contact Pavithra Rajesh, Esq. of GPM at 310-201-9150, Toll-Free at 888-773-9224, to discuss the status of the case and the claims in the litigation.
The case alleges that Ra Medical and certain current and former officers of the Company violated the federal securities laws by making false and/or misleading statements about Ra Medical's DABRA system and its sales and/or by acting as control persons with respect to such statements. According to the complaint, on March 14, 2019, Ra Medical disclosed that "production limitations" that resulted as the Company "scaled up catheter production" to meet increased demand negatively impacted fourth quarter 2018 revenue. On September 27, 2019, Ra Medical finally disclosed that it had initiated a "voluntary recall of its DABRA laser system single-use catheters" that purportedly reflected a recent "relabeling [of] the catheters with two-month expiration, replacing its previous twelve-month shelf life expiration." On October 31, 2019, Ra Medical reported the findings of its Audit Committee's investigation, revealing among other things, that "the Company's explanations regarding the Company's fourth quarter 2018 and first quarter 2019 sales created a risk of confusion because they did not explicitly reference inconsistent DABRA catheter performance and catheter failures" and that Ra Medical "engaged in systematic efforts to replace product held by customers, which constituted product recalls, but were not documented as such."
In its order denying-in-part defendants' motions to dismiss, the Court held that the complaint adequately alleges that the Company and certain of its current and former officers made misleading statements about DABRA's calibration problems and the covert product recall and that these misleading statements were made with scienter.
As a result of the ruling, the lead plaintiffs and the putative class will now be able to conduct discovery and begin preparing the case for trial. As lead counsel for the putative class, GPM attorneys Robert V. Prongay and Pavithra Rajesh achieved this result for investors.
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SOURCE Glancy Prongay & Murray LLP