Federman & Sherwood announces that a securities class action lawsuit has been filed against TranS1, Inc. (NASDAQ: TSON)

Oklahoma City, OK (January 25, 2012) -- On January 24, 2012, a class action lawsuit was filed in the United States District Court for the Eastern District of North Carolina against TranS1, Inc. (NASDAQ: TSON). 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 February 21, 2008 through October 17, 2011.  More specifically, this litigation was filed because on October 17, 2011, TranS1, Inc. disclosed that the Company had received a subpoena from the Department of Health and Human Services (HHS) for the period of January 1, 2008 through October 6, 2011, claiming that the Company was not in compliance with federal healthcare fraud and false claim statutes.  The Company also lacked adequate internal and financial controls, which resulted in  material misstatements of income and expense reports filed with the SEC.  On October 17, 2011, prior to the news being released, TranS1, Inc. shares closed at $3.12 and declined to $1.85 per share on October 18, 2011. 

Plaintiff seeks to recover damages on behalf of all TranS1, Inc. 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, March 26, 2012 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 kln@federmanlaw.com, 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.