SAN FRANCISCO, April 9, 2020 /PRNewswire/ -- Hagens Berman urges RTI Surgical Holdings (NASDAQ: RTIX) investors who have suffered significant losses to submit their loss now. A securities fraud class action has been filed and important investor deadlines have been established.
RTI Surgical Holdings, Inc. (RTIX) Securities Class Action:
The Complaint alleges that Defendants misrepresented and concealed that the Company inappropriately recognized revenues, including with its other equipment manufacturer (OEM) customers.
The truth emerged, according to the Complaint, on Mar. 17, 2020 when the Company announced it would not timely file its 2019 annual report. Defendants blamed the delay on an ongoing investigation into "the Company's revenue recognition practices involving the timing of revenue recognition with respect to certain contractual arrangements, primarily with OEM customers." This news drove the price of RTI Surgical shares sharply lower on Mar. 17, 2020.
Recent developments have strengthened investors' securities fraud claims. On Mar. 20, 2020, the Company announced the termination of Johannes W. Louw, RTI Surgical's former interim CFO, who headed the Company's financial planning and analysis.
Most recently, on Apr. 9, 2020, the company announced it will restate all previously audited financial statements for 2014 – 2018, and its unaudited financial statements for the quarterly periods for 2016 – 2018 and the nine months ended Sept. 30, 2019. The Company explained, in effect, it recognized revenue prematurely by shipping products to customers earlier than agreed upon. The Company further noted that on some "occasions the goods were delivered early without obtaining the customers' affirmative approval." Additionally, the Company divulged that in July 2017, an adjustment was improperly made to a product return provision in the Direct Division.
"We're focused on recovering investors' losses and proving that RTI Surgical engaged in improper revenue recognition practices to deceive investors into believing it was more profitable," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding RTI Surgical should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP