SAN FRANCISCO, March 25, 2020 (GLOBE NEWSWIRE) — Hagens Berman urges RTI Surgical Holdings (NASDAQ: RTIX) investors who have suffered significant losses to submit their loss now. A securities fraud class action has been filed, certain investors may have valuable claims, and important investor deadlines have been established.
RTI Surgical Holdings, Inc. (RTIX) Securities Class Action:
According to the Complaint, Defendants misrepresented and concealed material facts throughout the Class Period regarding the Company’s reported financial results. Specifically, the Complaint alleges that Defendants failed to disclose that: (1) the Company inappropriately recognized revenues with respect to certain contractual arrangements, including other equipment manufacturer customers, and (2) the Company’s internal controls over financial reporting were not effective.
Investors began to learn the truth, according to the Complaint, on Mar. 17, 2020 when the Company announced it would not timely file its annual report for the fiscal year ended Dec. 31, 2019. Defendants blamed the delay on an ongoing investigation “of current and prior period matters relating to the Company’s revenue recognition practices involving the timing of revenue recognition with respect to certain contractual arrangements, primarily with OEM customers, including the accounting treatment, financial reporting and internal controls related to such arrangements.”
This news drove the price of RTI Surgical shares sharply lower on Mar. 17, 2020.
Most recently, on Mar. 20, 2020, the Company announced the termination of Johannes W. Louw, RTI Surgical’s former interim CFO, who headed the Company’s financial planning and analysis. This news drove the price of RTI Surgical shares sharply lower again.
“We’re focused on recovering investors’ losses and proving that RTI Surgical engaged in improper revenue recognition practices to appear more profitable,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding RTI Surgical should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email RTIX@hbsslaw.com.
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Reed Kathrein, 844-916-0895