SAN DIEGO & MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Omnicell, Inc. (NASDAQ: OMCL) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between October 25, 2018 and June 11, 2019. Omnicell provides automation and business analytics software solutions for patient-centric medication and supply management to customers in the healthcare industry.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/omnicell-inc-jul-19/
Omnicell Accused of Misleading Investors
According to the complaint, throughout the relevant period, Omnicell touted its year-over-year increase in revenue in its quarterly financial reports. However, these financial reports were materially false as Omnicell recognized revenue for certain transactions before fulfilling performance obligations and engaged in improper accounting practices to meet revenue targets. Omnicell also misled investors by failing to disclose that it was experiencing weaker demand for new product lines and would therefore be required to write-off inventory. Then, on July 11, 2019, GlassHouse Research LLC published a report revealing that Omnicell had prematurely recognized $38.3 million in sales that should have been recognized long-term consistent with the company's performance obligations. The report also alleged that Omnicell's new product lines were being pushed onto customers to the point where "they are stuffed with products and hesitant to procure any more inventory," which GlassHouse predicted would require Omnicell to write off $23 million of obsolete inventory. Since this news, Omnicell's stock has fallen $18.16, nearly 21% and currently trades at $68.36.
Omnicell Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, firstname.lastname@example.org or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Check out Stock Watch, our free investment monitoring program for shareholders.
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