Pomerantz Law Firm Announces the Filing of a Class Action against Rockwell Medical, Inc. and Certain Officers – RMTI
NEW YORK, Sept. 04, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Rockwell Medical, Inc. (“Rockwell” or the “Company”) (NASDAQ: RMTI) and certain of its officers. The class action, filed in United States District Court, Eastern District of New York, and index under 18-cv-04993, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired Company securities between November 8, 2017 and June 26, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Rockwell securities between November 8, 2017, and June 26, 2018, both dates inclusive, you have until September 25, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Rockwell operates as an integrated biopharmaceutical company targeting end-stage renal and chronic kidney diseases in the United States and internationally. The Company’s lead branded drug is Triferic, an iron maintenance therapy that replaces the iron lost by patients during hemodialysis treatment, a dialysis treatment.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, 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 (“CMS”) would not pursue Rockwell’s proposal for separate reimbursement for Triferic; (ii) Rockwell’s quarterly report for the first quarter of 2018 misstated it reserves; (iii) there was a material weakness in Rockwell’s internal controls over financial reporting; (iv) consequently, Rockwell’s internal controls over financial reporting were ineffective during the Class Period; (v) Defendant Robert Chioini (“Chioini”), Rockwell’s President and Chief Executive Officer (“CEO”), withheld material information regarding Triferic from Rockwell’s auditor, corporate counsel and five independent directors of the Board; and (vi) as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked reasonable bases at all relevant times.
On May 10, 2018, the Company disclosed that it had “received a letter dated April 24, 2018 from the Securities and Exchange Commission requesting certain information generally with respect to the status of CMS’s determination of separate reimbursement status for Triferic and our current decision not to actively market and sell Triferic without such separate reimbursement.”
On May 22, 2018, during aftermarket hours, Rockwell announced that Defendant Chioini, Rockwell’s President and CEO, had been terminated effective immediately. The following day, NASDAQ announced that “trading in the company’s stock had been halted today, May 23, 2018, at 09:23:14 Eastern Time for ‘news pending’ at a last sale price of $5.94.”
Upon resumption of trading on May 25, 2018, Rockwell’s stock price fell $0.37 per share, or more than 6%, over two consecutive trading days to close at $5.57 per share on May 29, 2018, damaging investors.
On June 27, 2018, during pre-market hours, Rockwell disclosed that its public auditor, Plante & Moran, PLLC, resigned its position with the Company over Rockwell’s pursuit of separate reimbursement status for Triferic.
On this news, Rockwell’s stock price fell $0.85 per share, or over 16%, over two consecutive trading days to close at $4.41 per share on June 28, 2018, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com