World News: 22:54 GMT Friday 10th August 2018. [Pomerantz LLP via Globe Newswire via SPi World News]
NEW YORK, Aug. 10, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Rockwell Medical, Inc. (“Rockwell” or the “Company”) (NASDAQ: RMTI). Such investors are advised to contact Robert S. Willoughby at or 888-476-6529, ext. 9980.
The investigation concerns whether Rockwell and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 10, 2018, Rockwell disclosed that the Company “received a letter dated April 24, 2018 from the Securities and Exchange Commission requesting certain information generally with respect to the status of [Center for Medicare and Medicaid Services’ (“CMS”)] determination of separate reimbursement status for Triferic and our current decision not to actively market and sell Triferic without such separate reimbursement.”
On May 22, 2018, during aftermarket hours, Rockwell announced that Robert Chioini, Rockwell’s President and Chief Executive Officer, had been terminated effective immediately.
On May 23, 2018, NASDAQ announced that “trading in the company’s stock had been halted”. On May 23, 2018, Chioini issued a press release that contained a letter to Rockwell shareholders purporting to explain the circumstances surrounding his termination and raising questions about possible breaches of fiduciary duties by the Company’s board. On this news, upon resumption of trading on May 25, 2018, Rockwell’s share price fell $0.37, or over 6%, over two consecutive trading days to close at $5.57 on May 29, 2018, damaging investors.
On June 27, 2018, during pre-market hours, Rockwell announced the resignation of its auditor, Plante & Moran, PLLC, effective immediately, and disclosing communications indicating that CMS had declined Rockwell’s proposal for separate reimbursement status for Triferic, as well as a statement by the auditor that those communications were “inconsistent with representations made to us by Rockwell, orally and in writing.” The auditor further stated, , that there was a material weakness in Rockwell’s internal controls over financial reporting. On this news, Rockwell’s share price fell $0.85, or over 16%, over two consecutive trading days to close at $4.41 on June 28, 2018. Then, 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.”
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See .
Globe Newswire: 22:54 GMT Friday 10th August 2018
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