NEW YORK, April 19, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Repro-Med Systems, Inc. (d/b/a KORU Medical Systems) ("KORU" or the "Company") (NASDAQ: KRMD). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether KORU and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On November 3, 2020, after the market closed, KORU announced its third quarter 2020 financial results, reporting that net sales declined sequentially to $6.1 million. During an earnings call the next day, the Company attributed the lower sales to, among other things, "higher allowances for gross rebates for certain customers" and "payment discounts and distribution fees."
On this news, KORU's stock price fell $1.97 per share, or 32%, to close at $4.16 per share on November 4, 2020.
Then, on January 25, 2021, after the market closed, KORU announced its preliminary financial results for fiscal year 2020, expecting revenue of approximately $24.0 million, an increase of 3.4% over the prior year. The Company attributed the results to, among other things, "[s]lower growth in net revenue as a result of strengthening our contractual position with large customers." In the press release, KORU also announced the resignation of its Chief Executive Officer, Donald Pettigrew, effective immediately.
On this news, KORU's stock price fell $0.80 per share, or 15.5%, to close at $4.33 per share on January 26, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP