SAN DIEGO--(BUSINESS WIRE)--Shareholder rights firm Robbins Umeda LLP announces the filing of a federal securities class action by an investor in the U.S. District Court for the Eastern District of North Carolina on behalf of purchasers of TranS1, Inc. (NASDAQ: TSON) shares between February, 21 2008 and October 17, 2011 (the "Class Period"). Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Gregory E. Del Gaizo at (800) 350-6003, info@robbinsumeda.com, or via the shareholder information form on the firm's website.
The complaint alleges that beginning on February 21, 2008, certain officers and directors at TranS1 issued a series of positive statements to investors about the business condition, future prospects, and true performance of the company that were materially false and misleading. In particular, the complaint alleges that officials at TranS1 withheld material adverse facts from investors that: (1) the company was not in compliance with federal healthcare fraud and false claim statutes; (2) TranS1 engaged in improper reimbursement practices; (3) the company lacked adequate internal and financial controls; and that (4) as a result of the foregoing, the company's statements were materially false and misleading at all relevant times.
On October 17, 2011, TranS1 filed a Form 8-k with the U.S. Securities and Exchange Commission first disclosing that the company received a subpoena from the Department of Health and Human Services, under the authority of the federal healthcare fraud and false claims statutes. On this news, TranS1 shares declined more than 40% to close at just $1.85 per share on October 18, 2011.
Robbins Umeda LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsumeda.com.
Press release link: http://www.robbinsumeda.com/shareholders-rights-blog/trans1-inc/
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