NEW YORK, Dec. 14, 2020 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating claims of violations of federal securities laws on behalf of investors of OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (NASDAQ: KIDS).
OrthoPediatrics operates as a medical device company. The Company designs, develops, and commercializes orthopaedic implants and instruments to improve the lives of children with orthopaedic conditions.
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 from $44.75 per share, or over 12%, to close at $39.35 per share on December 3, 2020.
On December 14, 2020, Culper published on a follow up report in which it concluded that OrthoPediatrics “is a structurally broken business which has relied on nefarious tactics to inflate its reported revenues.”
On this news, OrthoPediatrics’ stock price fell from $44.30 per share to $43.10, or 2.7%, during intraday trading on December 14, 2020.
If you are a shareholder of OrthoPediatrics and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7201 or via email at investigations@lowey.com.
Whistleblowers: Persons with non-public information regarding OrthoPediatrics should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totalling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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Tel: (914) 733-7256
Email: investigations@lowey.com