ORTHOPEDIATRICS ALERT: Bragar Eagel & Squire, P.C. Is Investigating OrthoPediatrics Corp. on Behalf of OrthoPediatrics Stockholders and Encourages Investors to Contact the Firm

NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against OrthoPediatrics Corp. (NASDAQ: KIDS) on behalf of OrthoPediatrics stockholders. Our investigation concerns whether OrthoPediatrics has violated the federal securities laws and/or engaged in other unlawful business practices.

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On December 2, 2020, Culper Research (“Culper”) published a report entitled “OrthoPediatrics Corp. (KIDS): Even Channel Stuffing Can't Save This Company”. The Culper report described OrthoPediatrics as having “engaged in a channel stuffing scheme that has systematically and significantly overstated revenues.” Among other issues, the Culper report alleged that “the Company has abused its ability to book revenues upon shipment by selling and shipping excess product directly to its distributors, many of whom are exclusive to the Company” and described it as “concerning that many of the Company's ‘exclusive distributors’ are simply former OrthoPediatrics employees who have formed their own distributorships, often while still employed at the Company.”

On this news, OrthoPediatrics’ stock price fell $4.12 per share, or 9.13%, to close at $41.02 per share on December 2, 2020.

Then, on December 30, 2020, Culper Research tweeted that “a recent [Freedom of Information Act] request suggests that the Company is under an active SEC investigation,” citing a letter from the SEC that it withheld certain records pursuant to an exemption that “protects from disclosure records compiled for law enforcement purposes, the release of which could reasonably be expected to interfere with enforcement activities.”

On this news, the Company’s stock price fell $2.81, or 6%, to close at $43.57 per share on December 30, 2020.

Then, on December 31, 2020, OrthoPediatrics confirmed reports of an SEC investigation. The Company stated that it was “responding to a non-public, fact-finding inquiry” by the SEC, which had been initiated following Culper Research’s report on December 2, 2020.

On this news, the Company’s stock price fell $2.32, or 5%, to close at $41.25 per share on December 31, 2020.

If you purchased or otherwise acquired OrthoPediatrics shares and suffered a loss, are a long term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at [e-mail], or telephone at [phone], or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.