SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of OrthoPediatrics Corporation - KIDS
NEW YORK, Feb. 5, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of OrthoPediatrics Corporation ("OrthoPediatrics" or the "Company") (NASDAQ: KIDS). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether OrthoPediatrics and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On December 2, 2020, Culper Research ("Culper") published a report entitled "OrthoPediatrics Corp. (KIDS): Even Channel Stuffing Can't Save This Company". The Culper report described OrthoPediatrics as having "engaged in a channel stuffing scheme that has systematically and significantly overstated revenues." Among other issues, the Culper report alleged that "the Company has abused its ability to book revenues upon shipment by selling and shipping excess product directly to its distributors, many of whom are exclusive to the Company" and described it as "concerning that many of the Company's 'exclusive distributors' are simply former OrthoPediatrics employees who have formed their own distributorships, often while still employed at the Company."
On this news, OrthoPediatrics' stock price fell $4.12 per share, or 9.13%, to close at $41.02 per share on December 2, 2020.
Then, on December 31, 2020, OrthoPediatrics announced that the U.S. Securities and Exchange Commission had commenced a review of the Company on December 15, 2020. Finally, on January 13, 2021, Culper published a letter addressed to Deloitte & Touche, OrthoPediatrics' auditor, stating, in part: "[w]e believe OrthoPediatrics has failed to record proper inventory write-downs and/or establish reserves for product obsolescence."
On this news, OrthoPediatrics' stock price fell $2.08 per share, or 4.82%, to close at $41.05 per share on January 13, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
