LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (NASDAQ: KIDS) investors concerning the Company’s possible violations of the federal securities laws.
If you suffered a loss on your OrthoPediatrics investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/orthopediatrics-corp/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
On December 2, 2020, Culper Research issued a report entitled "OrthoPediatrics Corp. (KIDS): Even Channel Stuffing Can't Save This Company," alleging that the Company "engaged in a channel stuffing scheme that has systematically and significantly overstated revenues." Citing interviews with distributors and former executives, the report alleged that "distributors have been induced to buy excess product directly from the Company in exchange for (a) equity-based awards, (b) the opportunity to return product, and/or (c) product discounts or increased commission schedules."
On this news, the Company's stock price fell $4.12 per share, or 9%, to close at $41.02 per share on December 2, 2020, thereby injuring investors.
Then, on December 30, 2020, Culper Research tweeted that “a recent [Freedom of Information Act] request suggests that the Company is under an active SEC investigation,” citing a letter from the SEC that it withheld certain records pursuant to an exemption that “protects from disclosure records compiled for law enforcement purposes, the release of which could reasonably be expected to interfere with enforcement activities.”
On this news, the Company’s stock price fell $2.81, or 6%, to close at $43.57 per share on December 30, 2020, thereby injuring investors further.
Then, on December 31, 2020, OrthoPediatrics confirmed reports of an SEC investigation. The Company stated that it was “responding to a non-public, fact-finding inquiry” by the SEC, which had been initiated following Culper Research’s report on December 2, 2020.
On this news, the Company’s stock price fell $2.32, or 5%, to close at $41.25 per share on December 31, 2020, thereby injuring investors further.
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Whistleblower Notice: Persons with non-public information regarding OrthoPediatrics should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email shareholders@glancylaw.com.
About GPM
Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
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