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NEW YORK, June 12, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Ra Medical Systems, Inc. (Ra Medical or the “Company”) (NYSE:RMED) of the August 6, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Ra Medical securities pursuant and/or traceable to the Company’s September 2018 initial public offering (“IPO”) and would like to discuss your legal rights, click here: www.faruqilaw.com/RMED. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of all those who purchased Ra Medical securities pursuant and/or traceable to the Company’s September 27, 2018 IPO. The case, Derr v. Ra Medical Systems, Inc. et al., No. 19-cv-01079 was filed on June 7, 2019 and has been assigned to Judge Larry Alan Burns.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) that the Company’s evaluation of sales personnel candidates was inadequate; (2) that the Company’s training program for sales personnel was inadequate; (3) that, as a result, the Company could not reasonably assure that its newly hired sales personnel were adequately experienced; (4) that, as a result, the Company would suffer a shortage of qualified sales personnel; (5) that the Company’s manufacturing process could not reasonably support increased catheter production; (6) that, as a result, the Company would suffer production delays; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On March 14, 2019, the Company revealed that its fourth quarter 2018 financial results were negatively impacted by issues related to the hiring and training of qualified sales personnel as well as production limitations in the Company’s manufacturing process.
On this news, Ra Medical’s share price fell from $6.57 per share on March 14, 2019 to $4.43 per share on March 15, 2019: a $2.14 or a 32.57% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Ra Medical’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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