Repro Med Systems, Inc. Class Action Lawsuit
- Company Name
- Repro Med Systems, Inc. d/b/a KORU Medical Systems
- Stock Symbol
- Class Period
- August 4, 2020 to January 25, 2021
- Motion Deadline
- May 25, 2021
- Southern District of New York
The Repro Med Systems, Inc. d/b/a KORU Medical Systems class action lawsuit charges KORU Medical and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of KORU Medical securities between August 4, 2020 and January 25, 2021, inclusive (the “Class Period”). The KORU Medical class action lawsuit was commenced on March 26, 2021 in the Southern District of New York and is captioned Humenik v. Repro Med Systems, Inc. d/b/a KORU Medical Systems, No. 21-cv-02632.
KORU designs, manufactures, and markets proprietary portable medical devices, primarily for the ambulatory infusion market.
The KORU Medical class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) starting in January 2020, KORU Medical ramped up the use of allowances, including growth rebates, to retain key customers and to incentivize growth; (ii) as the rebates accrued, KORU Medical’s net sales were reasonably likely to decline; and (iii) as a result of the foregoing, defendants’ positive statements about KORU Medical’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On November 3, 2020, KORU Medical announced its third quarter 2020 financial results, reporting that net sales declined sequentially to $6.1 million. During the conference call the next day, KORU Medical attributed the lower sales to, among other things, “[h]igher allowances for growth rebates for certain customers” and “payment discounts and distribution fees.” On this news, KORU Medical’s stock price fell approximately 32%.
Then, on January 25, 2021, KORU Medical announced its preliminary financial results for fiscal 2020, expecting revenue of approximately $24.0 million, an increase of 3.4% over the prior year. KORU Medical attributed the results to, among other things, “[s]lower growth in net revenue as a result of strengthening our contractual position with large customers.” In the press release, KORU Medical also announced that its CEO, Donald Pettigrew, resigned, effective immediately. On this news, KORU Medical’s stock price fell more than 15%, further damaging investors.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased KORU Medical securities during the Class Period to seek appointment as lead plaintiff in the KORU Medical class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the KORU Medical class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the KORU Medical class action lawsuit. An investor’s ability to share in any potential future recovery of the KORU Medical action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the KORU Medical class action lawsuit or have questions concerning your rights regarding the KORU Medical class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at email@example.com. Lead plaintiff motions for the KORU Medical class action lawsuit must be filed with the court no later than May 25, 2021.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.