Robbins Arroyo LLP: Rockwell Medical, Inc. (RMTI) Misled Shareholders According to a Recently Filed Class Action
May 5, 2016 (San Diego, CA & Wixom, MI) – Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Rockwell Medical, Inc. (NASDAQGM: RMTI) in the U.S. District Court for the Southern District of New York. The plaintiff brings the complaint on behalf of all purchasers of Rockwell Medical securities between November 19, 2014 and February 29, 2016, for alleged violations of the Securities Act of 1934 by Rockwell Medical’s officers and directors. Rockwell Medical operates as an integrated biopharmaceutical company in the United States and internationally.
Rockwell Medical Accused of Misleading Investors About Its Lead Drug Candidate
According to the complaint, throughout 2014 and 2015, Rockwell Medical issued numerous press releases touting the eminent success of its Triferic drug candidate. On January 26, 2015, Rockwell Medical announced that the U.S. Food and Drug Administration had approved Triferic for commercial sale and touted Triferic’s ability to become the market-leading therapy for hemodialysis patients combating chronic kidney disease. On May 7, 2015, Rockwell Medical announced first quarter 2015 results, noting its strong financial position and stating that it expected Triferic to become the new standard of care for treating anemia in hemodialysis patients. On November 9, 2015, the company stated that it anticipated broad clinical adoption over the next several months based on a favorable response from the clinical community and strong interest from dialysis providers. The complaint alleges these statements were misleading because Triferic was unlikely to produce material sales in fiscal year 2015, and sales of Triferic were immaterial in fiscal year 2015.
The truth began to emerge on February 29, 2016, when Rockwell Medical announced its fourth quarter 2015 results, stating “our net sales of Triferic were immaterial for 2015.” In response to the revelation of Triferic’s poor net sales, some analysts questioned the commercial viability of Triferic, noting that there had been no mention of ongoing pilot studies or contract talks—items that had been highlighted in prior quarterly calls and had served as significant Rockwell Medical catalysts. On this news, Rockwell Medical stock fell $3.29 per share, or approximately 34%, to close at $6.31 per share on March 1, 2016.
Rockwell Medical 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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