LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a national investor rights law firm, continues its investigation on behalf of OrthoPediatrics Corp. (“OrthoPediatrics” or the “Company”) (NASDAQ: KIDS) investors concerning the Company and its officers’ possible violations of the federal securities laws.
If you suffered a loss on your OrthoPediatrics investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/orthopediatrics-corp/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
On December 2, 2020, Culper Research issued a report entitled “OrthoPediatrics Corp. (KIDS): Even Channel Stuffing Can’t Save This Company,” alleging that the Company “engaged in a channel stuffing scheme that has systematically and significantly overstated revenues.” Citing interviews with distributors and former executives, the report alleged that “distributors have been induced to buy excess product directly from the Company in exchange for (a) equity-based awards, (b) the opportunity to return product, and/or (c) product discounts or increased commission schedules.”
On this news, the Company’s stock price fell $4.12 per share, or 9%, to close at $41.02 per share on December 2, 2020, thereby injuring investors.
Then, on December 30, 2020, Culper Research tweeted that “a recent [Freedom of Information Act] request suggests that the Company is under an active SEC investigation,” citing a letter from the SEC that it withheld certain records pursuant to an exemption that “protects from disclosure records compiled for law enforcement purposes, the release of which could reasonably be expected to interfere with enforcement activities.”
On this news, the Company’s stock price fell $2.81, or 6%, to close at $43.57 per share on December 30, 2020, thereby injuring investors further.
Then, on December 31, 2020, OrthoPediatrics confirmed reports of an SEC investigation. The Company stated that it was “responding to a non-public, fact-finding inquiry” by the SEC, which had been initiated following Culper Research’s report on December 2, 2020.
On this news, the Company’s stock price fell $2.32, or 5%, to close at $41.25 per share on December 31, 2020, thereby injuring investors further.
Whistleblower Notice: Persons with non-public information regarding OrthoPediatrics should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email firstname.lastname@example.org.
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