Securities Class Action Filed Against Rockwell Medical, Inc. (RMTI); Block & Leviton Encourages Rockwell Investors to Contact The Firm
BOSTON, July 31, 2018 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, announces that a securities fraud class action has been filed against Rockwell Medical ("Rockwell" or the "Company") (NASDAQ: RMTI) and certain of its officers alleging violations of the federal securities laws. Block & Leviton encourages shareholders to contact the Firm ahead of the September 25, 2018 lead plaintiff deadline.
On June 27, 2018, Rockwell announced that its auditor, Plante & Moran, PLLC, had resigned. Rockwell's auditor expressed concerns that the Company already knew that its drug "Triferic" would not receive "separate reimbursement" from the Centers for Medicare and Medicaid Services (CMS). The auditor alleged that the Company failed to communicate this information and/or made misleading representations. The auditor further stated that there were material weaknesses in Rockwell's internal controls over financial reporting.
On this news, Rockwell's share price fell $0.85, or over 16%, over two consecutive trading days to close at $4.41 on June 28, 2018.
The complaint, filed in the United States District Court Eastern District of New York, alleges that between March 16, 2018 and June 26, 2018, inclusive (the "Class Period"), Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) Rockwell was aware that the CMS will not pursue Rockwell's proposal for separate reimbursement for Triferic; (2) the estimated reserves in Rockwell's Form 10-Q for the quarter ended March 31, 2018 were misstated; (3) there were material weaknesses in Rockwell's internal control over financial reporting; (4) consequently, Rockwell's internal controls over financial reporting were ineffective; (5) Robert L. Chioini, former Chief Executive Officer of Rockwell, withheld material information regarding Triferic from Rockwell's auditor, corporate counsel and five independent directors of Rockwell's Board; and (6) as a result, Defendants' statements about Rockwell's business, operations and prospects were materially false and misleading and/or lacked reasonable bases at all relevant times.
If you purchased RMTI shares between March 16, 2018 and June 26, 2018 and wish to serve as a lead plaintiff, you must move the Court no later than September 25, 2018. As a member of the class, you may seek to file a motion to serve as a lead plaintiff or take no action and remain an absent class member. If you wish to become involved in the litigation or have questions about your legal rights, you are encouraged to contact Attorney John DeFelice at (888) 868-2385, by email at john@blockesq.com or by visiting http://shareholder.law/rockwell.
Confidentiality to whistleblowers or others with information relevant to this investigation is assured.
Block & Leviton LLP was recently ranked 4th among securities litigation firms by ISS for recoveries in 2017. The firm represents many of the nations' largest institutional investors and numerous individual investors in securities litigation throughout the country. Indeed, its lawyers have recovered billions of dollars for its clients.
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CONTACT:
BLOCK & LEVITON LLP
John DeFelice
(617) 398-5600 phone
155 Federal Street, Suite 400
Boston, MA 02110
john@blockesq.com
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SOURCE Block & Leviton LLP
Company Codes: NASDAQ-NMS:RMTI