NEW ORLEANS, May 22, 2020 /PRNewswire/ -- Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC ("KSF"), announces that KSF has commenced an investigation into Ra Medical Systems, Inc. (NYSE: RMED).
On March 14, 2019, the Company disclosed 4Q2018 revenue significantly below projections due to sales personnel staffing issues and certain production limitations, assuring investors that the issues had been resolved. Then, on August 12, 2019, the Company disclosed inconsistencies in its manufacturing process, an increasing number of product calibration failures, and an internal investigation by its Audit Committee. On September 27, 2019, Ra disclosed that it had initiated a "voluntary recall" of its DABRA catheters "due to a change in product labeling" to reflect a "two-month expiration, replacing its previous twelve-month shelf life expiration."
Then, on October 31, 2019, the Company disclosed a wide range of problems found by its investigation including frequent product calibration failures and even occasional overheating, posing risks to patients; that the product failures were the true cause of its negative financial performance rather than production limitations; improper marketing of its DABRA catheter for use in unapproved medical procedures; failure to properly document payments to physicians; and, the receipt of a Civil Investigative Demand by the U.S. Justice Department regarding whether it fraudulently obtained marketing clearance for DABRA or made improper kick-back payments to healthcare providers. On November 29, 2019, the Company disclosed that the DOJ inquiry had escalated to an open criminal investigation.
The Company has been sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws, which remains ongoing.
KSF's investigation is focusing on whether Ra Medical's officers and/or directors breached their fiduciary duties to Ra Medical's shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Ra Medical shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn ([email protected]), or visit https://www.ksfcounsel.com/cases/nyse-rmed/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, California and Louisiana.