RADNOR, Pa., Jan. 15, 2016 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Osiris Therapeutics, Inc. (Nasdaq: OSIR) ("Osiris" or the "Company") on behalf of purchasers of the Company's securities between May 12, 2014 and November 16, 2015, inclusive (the "Class Period").
Osiris shareholders who wish to discuss this action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or at [email protected].
For additional information about this lawsuit, or to request information about this action online, please visit https://www.ktmc.com/new-cases/osiris-therapeutics-inc.
Osiris researches and develops biosurgery solutions, focusing on products for wound care, cartilage repair and orthopedics, to harness the ability of cells and novel constructs to promote the body's natural healing.
The shareholder class action complaint alleges that Osiris and certain of its executive officers made a series of materially false and misleading statements to investors during the Class Period about the Company's business, operational and financial information. Specifically, the defendants are alleged to have made false and misleading statements and/or failed to disclose that: (i) the Company overstated revenues from several contracts and failed to follow GAAP standards, fixing its financial statements only a year and half later and causing millions in losses to the Company and Investors; and (ii) as a result of the foregoing, Osiris's public statements were materially false and misleading at all relevant times.
As further detailed in the complaint, on November 16, 2015, Osiris disclosed that it had "determined to correct the revenue recognition for three contracts which will result in a decrease in product revenues of $1.8 million in the first quarter of 2015, a decrease in product revenue of $1.0 million in the second quarter, an increase in product revenues of $0.8 million in the third quarter of 2015 and a decrease in product revenues of $1.1 million in 2014." In sum, three restatements were made regarding distributor relationships, which completely removed about $3.1 million of sales and shifted about $3.9 million of sales between quarters. As a result of these errors, Osiris missed its revenue targets in three of the last four financial quarters.
On this news, shares of Osiris' common stock fell $3.01 per share, or over 21.5%, to close on November 17, 2015 at $10.97 per share, on unusually heavy trading volume.
Osiris shareholders may, no later than January 22, 2016, petition the Court to be appointed as a lead plaintiff of the class. Members of the purported class may petition the Court to be appointed as a lead plaintiff through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member.
A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Members of the purported class may petition the Court to be appointed as a lead plaintiff through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
SOURCE Kessler Topaz Meltzer & Check, LLP