SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a securities class action case has been filed on behalf of purchasers of Ra Medical Systems, Inc. (NYSE:RMED) securities pursuant and/or traceable to the Company’s September 2018 initial public offering (“IPO”) in the U.S. District Court for the Southern District of California, captioned Derr v. Ra Medical Systems, Inc., No. 3:19-cv-01079, and assigned to Judge Burns. The complaint charges Ra Medical, certain of its officers and directors, and the underwriters of the IPO with violations of the Securities Act of 1933.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Ra Medical securities in the IPO to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff or have questions concerning your rights, please contact Brian Cochran at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions must be filed with the court no later than August 9, 2019.
The complaint alleges that the Registration Statement for the IPO was negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading. Specifically, the Registration Statement failed to disclose that the Company’s evaluations of and training program for sales personnel were inadequate, and as such, the Company could not ensure that its newly hired sales personnel were adequately experienced, which, in turn, could reasonably lead to the Company suffering a shortage of qualified sales personnel. In addition, the Registration Statement failed to disclose that the Company’s manufacturing process could not support increased catheter production, which would result in production delays.
On March 14, 2019, the Company announced financial results for the fourth quarter of 2018 that had been negatively impacted by issues related to the hiring and training of qualified sales personnel and certain production limitations. The Company stated that it had “experienced certain issues that had an impact on [its] fourth quarter revenue and into 2019. In particular, the hiring and training of qualified sales personnel was dependent on the onboarding of [its] CCO and [it] also found that [it] needed a more robust training program for [its] newly hired sales personnel . . . . In addition, [the Company] experienced production limitations in [its] manufacturing process as [it] scaled up catheter production.” On this news, the price of the Company’s shares fell $2.14 per share, or nearly 33%, to close at $4.43 per share on March 15, 2019. Since the IPO, Ra Medical’s stock has traded as low as $3.40 per share, or 80% below the price at which the stock was sold in the IPO.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.