NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Rockwell Medical, Inc. (NASDAQ: RMTI) (“Rockwell” or the “Company”) and other defendants, related to alleged violations of federal securities laws. If you purchased Rockwell stock or securities between March 16, 2016 and June 26, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for additional information.
Rockwell is a biopharmaceutical company targeting end-stage renal and chronic kidney diseases. The company's lead drug is Triferic, an iron maintenance therapy that replaces the iron lost by patients during hemodialysis treatment.
The lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) Rockwell was aware that the Centers for Medicare and Medicaid Services will not pursue Rockwell's proposal for separate reimbursement for Triferic; (ii) the estimated reserves in Rockwell's Form 10-Q for the quarter ended March 31, 2018 are misstated; (iii) there was a material weakness in Rockwell's internal control over financial reporting; (iv) consequently, Rockwell's internal control over financial reporting was ineffective during the Class Period; (v) Robert L. Chioini, former Chief Executive Officer of Rockwell, withheld material information regarding Triferic from Rockwell's auditor, corporate counsel and five independent directors of Rockwell's Board; and (vi) as a result of the foregoing, Defendants’ statements about Rockwell’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On May 22, 2018, Rockwell announced that Robert Chioini, Rockwell’s President and Chief Executive Officer, had been terminated effective immediately. On this news, NASDAQ halted trading in Company stock. Upon resumption of trading on May 25, 2018, shares of Rockwell fell $0.37 per share, or over 6%, over two consecutive trading days to close at $5.57 per share.
On June 27, 2018, Rockwell announced the resignation of its auditor, Plante & Moran, PLLC, effective immediately. The announcement included a letter from the auditor stating that Rockwell had provided inconsistent representations to the auditor. On this news, the price of Rockwell shares fell $0.85, over 16%, over two trading days, to close at $4.41 per share on June 28, 2018.
What You Can Do
If you purchased Rockwell shares between March 16, 2016 and June 26, 2018, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at firstname.lastname@example.org. Investors have until September 25, 2018, to move for lead plaintiff.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.