LOS ANGELES–(BUSINESS WIRE)–The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of OrthoPediatrics Corp. (“OrthoPediatrics” or “the Company”) (NASDAQ: KIDS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. OrthoPediatrics is the subject of a report published by Culper Research on December 2, 2020, titled: “OrthoPediatrics Corp. (KIDS): Even Channel Stuffing Can’t Save This Company.” The report alleges that the Company has “engaged in a channel stuffing scheme that has systematically and significantly overstated revenues.” Culper adds that “the Company has abused its ability to book revenues upon shipment by selling and shipping excess product directly to its distributors, many of whom are exclusive to the Company.” Culper further states it is “concerning that many of the Company’s ‘exclusive distributors’ are simply former OrthoPediatrics employees who have formed their own distributorships, often while still employed at the Company.” Based on this report, shares of OrthoPediatrics dropped by more than 9% on the same day.
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The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
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