Robbins Arroyo LLP: Osiris Therapeutics, Inc. (OSIR) Misled Shareholders According to a Recently Filed Class Action
Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the District of Maryland. The complaint alleges that officers and directors of Osiris Therapeutics, Inc. (NASDAQGM: OSIR) violated the Securities Exchange Act of 1934 between May 12, 2014 and November 16, 2015, by making materially false and misleading statements about the company’s business prospects. Osiris researches, develops, manufactures, markets, and distributes regenerative medicine products in the United States.
Osiris Accused of Issuing Misleading Statements About its Financial Performance
According to the complaint, Osiris made false and misleading statements throughout the class period and failed to disclose material adverse facts about the company’s financials, operations, and business. In particular, the complaint alleges that Osiris misled investors by overstating company earnings by $3.1 million and waited a year and a half to correct its financial statements, causing investors millions of dollars in losses.
On November 17, 2015, shares of Osiris fell $3.02, or 21.53%, to close at $10.97, following the November 16 announcement that Osiris “determined to correct the revenue recognition for three contracts which will result in a decrease in product revenues of $1.8 million in the first quarter of 2015, a decrease in product revenue of $1.0 million in the second quarter, an increase in product revenues of $0.8 million in the third quarter of 2015 and a decrease in product revenues of $1.1 million in 2014.” As a result, Osiris missed company revenue targets in the three of its last four quarters.
Osiris Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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