NEW YORK, Nov. 19, 2015 /PRNewswire/ -- Wolf Popper LLP is investigating potential securities fraud claims on behalf of investors in Osiris Therapeutics, Inc. securities (NASDAQ: OSIR). Osiris investors can contact Fei-Lu Qian at 877.370.7703 or [email protected] for more information.
On November 6, 2015, Osiris announced financial results for its third quarter of 2015 and disclosed that it will change the accounting for its inventory consignment arrangement with one of its distributors, "PhysioRX, LLC from an accrual basis of accounting to a cash basis of accounting" as there was a "lack of sufficient evidence of the contractual arrangement to satisfy applicable auditing standards." Consequently, the Company acknowledged that it over-reported revenue on an accrual basis and that revenue should be recognized only "when cash receipts are actually received."
On this disclosure, Osiris common stock declined $3.71 per share or 20%, to close at $14.54 per share on November 6, 2015.
On November 16, 2015, Osiris disclosed that due to its internal review into "the timing of revenue recognition under contracts with its distributors," that certain "transactions did not meet certain conditions for revenue recognition in the fourth quarter, and the first and second quarters of 2015." Accordingly, the Company restated the revenue recognition for three contracts resulting "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."
On this news, Osiris common stock declined an additional $3.01 or 21.5%, to close at $10.97 on November 17, 2015.
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