NEW YORK, Aug. 16, 2018 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Rockwell Medical, Inc. ("Rockwell" or the "Company") (NASDAQ: RMTI) of the September 25, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Rockwell stock or options between March 16, 2018 and June 26, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/RMTI. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected]
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Rockwell securities between March 16, 2018 and June 26, 2018 (the "Class Period"). The case, Too v. Rockwell Medical, Inc. et al, No. 18-cv-04253 was filed on July 27, 2018, and has been assigned to Judge Allyne R. Ross.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Rockwell was aware that the Centers for Medicare and Medicaid Services ("CMS") would not pursue Rockwell's proposal for separate reimbursement for Triferic, the Company's lead branded drug, which serves as an iron maintenance therapy for patients undergoing hemodialysis treatment; (2) the estimated reserves in the first quarter 2018 10-Q were misstated; (3) a material weakness in Rockwell's internal controls over financial reporting rendered them ineffective; and (4) Robert Chioini, the Company's President and Chief Executive Officer, withheld material information from Rockwell's auditor, counsel, and certain directors.
Specifically, aftermarket on May 22, 2018, Rockwell announced that Robert Chioini had been terminated effective immediately. On May 23, 2018, NASDAQ announced that "trading in the company's stock had been halted . . . for 'news pending' at a last sale price of $5.94."
On this news, the Company's share price fell from $5.94 on May 22, 2018 to $5.57 when it resumed trading on May 29, 2018—a $0.37 or 6.23% drop.
Then, premarket on June 27, 2018, Rockwell filed a Form 8-K announcing the resignation of its auditor. According to the auditor, Rockwell misrepresented the likelihood that its proposal to have Triferic gain separate reimbursement status with the CMS would be accepted. This misinformation meant that the estimated reserves in Rockwell's first quarter 2018 10-Q were misstated because CMS had decided not to pursue the Company's proposal, and, consequently, that a material weakness existed in Rockwell's internal controls over financial reporting.
On this news, the Company's share price fell from $5.26 on June 26, 2018 to $4.41 per share on June 28, 2018—a $0.85 or 16.16% drop over two trading days.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Rockwell's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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