NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in RTI Surgical Holdings, Inc. ("RTI" or the "Company") (NASDAQ:RTIX) of the May 22, 2020 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 RTI stock or options between March 7, 2016 and March 16, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/RTIX. 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].
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of all those who purchased RTI securities between March 7, 2016 and March 16, 2020 (the "Class Period"). The case, Lowry et al v. RTI Surgical Holdings, Inc. et al., No. 20-cv-01939 was filed on March 23, 2020 and has been assigned to Judge Matthew F. Kennelly.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that that: (1) the Company inappropriately recognized revenues with respect to certain contractual arrangements, including other equipment manufacturer customers; (2) the Company's internal controls over financial reporting were not effective; (3) as a result, the Company would be forced to delay the filing of its Form 10-K for fiscal year ended December 31, 2019; and (4) as a result, defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
Specifically, on March 16, 2020, after the market closed, RTI announced in a press release that it would file a Form 12b-25 with SEC due to its inability to timely file its Form 10-K for the fiscal year ended December 31, 2019. The Company disclosed that the cause of the delay was that its Audit Committee was investigating the Company's revenue recognition practices.
On this news, RTI's share price fell from $2.75 per share on March 16, 2020 to a closing price of $2.35 on March 17, 2020: a $0.40 or a 14.55% drop.
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 RTI's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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