Rockwell Alert: Bernstein Liebhard LLP Announces Investigation Of Rockwell Medical, Inc. - RMTI
NEW YORK, July 6, 2018 /PRNewswire/ -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of Rockwell Medical, Inc. ("Rockwell" or the "Company") (NASDAQ: RMTI) resulting from allegations that Rockwell may have issued materially misleading business information to the investing public. If you purchased Rockwell securities, and/or would like to discuss your legal rights and options, please visit Rockwell Medical Shareholder Investigation or contact Daniel Sadeh toll free at (877) 779-1414 or [email protected].
On June 27, 2018, Rockwell announced the resignation of its auditor, effective immediately, and disclosed a letter, dated June 22, 2018, from the auditor to Rockwell (the "letter"). The letter attached an e-mail, dated March 27, 2018, from the Centers for Medicare and Medicaid Services ("CMS") to Rockwell, regarding Rockwell's pursuit of separate reimbursement status for Triferic. In the e-mail, the CMS stated that it reviewed the Company's proposal for separate reimbursement status for Triferic, and "[u]nfortunately, given the other initiatives CMS has underway, we will not be able to pursue this model." According to the auditor's letter, "this e-mail and its contents are inconsistent with representations made to us by Rockwell, orally and in writing." The auditor's letter claims that due the e-mail, the estimated reserves in Rockwell's Form 10-Q for the period ended March 31, 2018 ("1Q 10-Q") are misstated and have not been corrected, there was a material weakness in Rockwell's internal controls over financial reporting, the signed certifications by Robert L. Chioini, the former President and CEO of Rockwell, and Thomas E. Klema, the former CFO of Rockwell, of the 1Q 10-Q pursuant to the Sarbanes-Oxley Act of 2002 were "inconsistent with the facts in existence at the time of filing," and statements within the 1Q 10-Q "regarding the status of Rockwell's request for separate reimbursement with CMS and the prospects for reversal of CMS's decisions," "should be clearer and more transparent."
On this news, shares of Rockwell fell $0.85 per share, or over 16%, over two consecutive trading days to close at $4.41 per share on June 28, 2018, damaging investors.
On June 29, 2018, Rockwell issued a press release stating that "it appears that Chioini and perhaps others withheld information regarding Triferic from the Company's auditor, corporate counsel and five independent directors of the Board."
If you purchased Rockwell securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/rockwell-medical-inc-rmti-class-action-lawsuit-72/ or contact Daniel Sadeh toll free at (877) 779-1414 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2018 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information
Daniel Sadeh
Bernstein Liebhard LLP
http://www.bernlieb.com
(877) 779-1414
[email protected]
SOURCE Bernstein Liebhard LLP
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