RTI Surgical Holdings, Inc.
Lead Plaintiff Deadline: 05/22/2020
SUMMARY OF CASE:
A securities class action has been filed against RTI Surgical Holdings, Inc. (RTIX) on behalf of investors who purchased shares of the Company’s stock between March 7, 2016 through March 16, 2020. This case has been filed in the USDC – N.D. Ill.
On March 16, 2020, RTI Surgical disclosed that its Audit Committee was “in the process of conducting an internal investigation of current and prior period matters relating to the Company’s revenue recognition practices regarding the timing of revenue with respect to certain contractual arrangements, primarily with OEM customers, including the accounting treatment, financial reporting and internal controls related to such arrangements.” Additionally, the Company disclosed that the investigation “was precipitated by an ongoing SEC investigation related to the periods 2014 through 2016.”
Following this news, shares of the Company’s stock declined $0.76 per share, or over 27% in value, to close on March 18, 2020 at $1.99 per share.
The complaint alleges that RTI Surgical made a series of false and misleading statements to investors during the Class Period, and failed to disclose that: (i) the Company inappropriately recognized revenues with respect to certain contractual arrangements, including other equipment manufacturer customers; and (ii) the Company’s internal controls over financial reporting were not effective.