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Oklahoma City, OK (July 30, 2018) – On July 27, 2018, a securities class action lawsuit was filed in the United States District Court for the Eastern District of New York against Rockwell Medical, Inc. (NASDAQ: RMTI). 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 March 16, 2018 through June 26, 2018. More specifically, this litigation was filed because defendants during the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Rockwell was aware that the Centers for Medicare and Medicaid Services would 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 was a material weakness in Rockwell’s internal controls over financial reporting; (4) consequently, Rockwell’s internal controls over financial reporting were ineffective during the Class Period; (5) defendant Robert L. Chioini, Rockwell’s former Chief Executive Officer, 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.
On May 22, 2018, Rockwell announced that Robert Chioini, Rockwell’s President and Chief Executive Officer, had been terminated effective immediately. On this news, NASDAQ halted trading in Company stock. Upon resumption of trading on May 25, 2018, shares of Rockwell fell $0.37 per share, or over 6%, over two consecutive trading days to close at $5.57 per share.
On June 27, 2018, Rockwell announced the resignation of its auditor, Plante & Moran, PLLC, effective immediately. The announcement included a letter from the auditor stating that Rockwell had provided inconsistent representations to the auditor. On this news, the price of Rockwell shares fell $0.85, over 16%, over two trading days, to close at $4.41 per share on June 28, 2018.
Plaintiff seeks to recover damages on behalf of all Rockwell Medical, 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 Tuesday, September 25, 2018 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.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org