NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of those who acquired Ra Medical Systems, Inc. (“Ra Medical” or the “Company”) (NYSE: RMED) securities pursuant and/or traceable to its September 2018 Initial Public Offering (“IPO”). Investors have until August 9, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Ra Medical’s Registration Statement failed to disclose to investors that: (i) the Company’s evaluation of sales personnel candidates and subsequent training program for sales personnel were inadequate; (ii) as a result, the Company could not reasonably assure that its newly hired sales personnel were adequately experienced; (iii) as a result, the Company would suffer a shortage of qualified sales personnel; (iv) the Company’s manufacturing process could not reasonably support increased catheter production; and (v) as a result, the Company would suffer production delays.
In September 2018, Ra Medical completed its IPO, issuing approximately 4.5 million shares of common stock priced at $17.00 per share. On March 14, 2019, the Company revealed that its fourth quarter 2018 financial results had been negatively impacted by issues related to the hiring and training of qualified sales personnel and certain production limitations. On this news, Ra Medical’s stock price fell $2.14 per share, approximately 32.6%, to close at $4.43 per share on March 15, 2019. As of the filing of this lawsuit, Ra Medical’s shares were trading as low as $3.30 per share.
If you acquired Ra Medical securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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