INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Tactile Systems Technology, Inc. (TCMD) Investors
Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Tactile Systems Technology, Inc. (“Tactile” or the “Company”) (NASDAQ: TCMD) securities between May 7, 2018 and June 8, 2020, inclusive (the Class Period). Tactile investors have until November 30, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Tactile investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On March 20, 2019, an amended Qui Tam complaint against Tactile was unsealed, alleging that the Company illegally paid hospital staff to induce physicians to prescribe its medical devices and had submitted fraudulent claims to Medicare and Veterans Administration (VA).
On this news, Tactiles share price fell $4.53 per share, or over 7%, over two consecutive trading sessions to close at $55.57 per share on March 22, 2019.
Then, on February 21, 2020, the court denied Tactiles motion to dismiss the Qui Tam complaint in its entirety. Analysts warned that [o]nly two options remaineither this qui tam gets settled out of court, or it goes to discovery.
On this news, Tactiles share price fell $6.65 per share, or over 10%, to close at $56.09 per share on February 24, 2020.
On June 8, 2020, OSS Research issued a report on alleging that the true source of Tactiles growth is a kick-back scheme that has resulted in rampant overprescribing. The OSS Research report also alleged that Medicare has recently launched an industry-wide audit in which Tactile has been disproportionately targeted. 70% of Tactiles claims audited so far have been retroactively denied.
On this news, Tactiles share price fell $6.05 per share, or over 11%, to close at $45.67 per share on June 9, 2020, thereby injuring investors.
The complaint alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) while Tactile publicly touted a $4 plus billion or $5 plus billion market opportunity, in fact, the total addressable market for Tactiles medical devices was materially smaller; (2) to induce sales growth and share gains, the Company and/or its employees were engaged in illicit and illegal sales and marketing activities in violation of applicable federal and state rules and public payer regulations; (3) the foregoing illicit and illegal sales and marketing activities increased the risk of a Medicare audit of Tactiles claims and criminal and civil liability; (4) Tactiles profits were in part the product of unlawful conduct and thus unsustainable; and that as a result of the foregoing, (5) the Companys public statements, including its year-over-year revenue growth and the purported growth drivers, were materially false and misleading at all relevant times; and (6) that, as a result of the foregoing, the Defendants statements about the Companys business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased Tactile securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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Law Offices of Howard G. Smith
Howard G. Smith, Esquire