Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit
Against IRadimed Corporation
Oklahoma City, OK (September 12, 2014) – On September 10, 2014, a securities class action lawsuit was filed in the United States District Court for the Southern District of Florida against IRadimed Corporation (NASDAQ: IRMD). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 15, 2014 through September 9, 2014. More specifically, this litigation was filed when the Company announced that it received a warning letter from the FDA requesting that the Company immediately stop all activities that misbranded or adulterated its mRidium 3860+ MRI infusion pump, mRidium 3850 MRI infusion pump, and/or the mRidium 3860 MRI infusion pump, such as the commercial distribution of the devices. This adverse news caused IRadimed's stock to fall $3.30 per share, or more than 30%, to close at $7.10 per share on September 3, 2014.
According to the lawsuit, IRadimed failed to disclose that: (a) the Company's infusion pump systems had been significantly modified, possibly affecting the safety or effectiveness of the devices; (b) as such, under applicable federal regulations the Company's products are "adulterated" and "misbranded"; (c) the Company's mRidium 3860+ infusion pump requires separate FDA clearance from the mRidium 3860 and mRidium 3850; and (d) the Company failed to disclose the material uncertainties and risks that their products were adulterated or misbranded.
Plaintiff seeks to recover damages on behalf of all IRadimed Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, November 10, 2014 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Lynn.
Posted on Fri, September 12, 2014
by K. Lynn Nunn filed under