Robbins Arroyo LLP: Rockwell Medical, Inc. (RMTI) Misled Shareholders According to a Recently Filed Class Action
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 September 9, 2015 and February 29, 2016, for the alleged violations 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, on January 26, 2015, Rockwell Medical issued a press release announcing that the U.S. Food and Drug Administration (“FDA”) had approved its drug Triferic for commercial sale and touting Triferic’s ability to become the market-leading therapy for hemodialysis patients combating chronic kidney disease. 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 same day, Rockwell Medical announced that the Centers for Medicare and Medicaid Services (“CMS”) determined how the agency will pay for services provided to Medicare beneficiaries for 2016—as expected, Triferic is in the bundled reimbursement, therefore as already accounted for in the bundled payment made to healthcare providers. The complaint alleges these statements were misleading because they failed to disclose that the primary product offering for Triferic will be in a powder packet packaging, which the FDA had not approved, and that Rockwell Medical was actually seeking to obtain transitional add-on payment reimbursement for Triferic with CMS instead of bundled reimbursement.
The truth began to emerge on February 29, 2016, when Rockwell Medical announced that it developed new powder packaging for Triferic which was not yet commercially available, admitting that the new packaging required the company to submit a separate New Drug Application to the FDA. The company further stated that was working with CMS to secure transitional add-on payment, which would place Triferic reimbursement outside of the bundle for a period of time. 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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