TACTILE SYSTEMS TECHNOLOGY, INC. CLASS ACTION ALERT: Wolf Haldenstein Adler Freeman & Herz LLP announces that a securities class action lawsuit has been filed in the United States District Court for the District of Minnesota on behalf of investors that purchased Tactile Systems Technology, Inc.
NEW YORK, Oct. 20, 2020 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed against Tactile Systems Technology, Inc. ("Tactile Systems" or the "Company") (NASDAQ: TCMD) in the United States District Court for the District of Minnesota on behalf of those who purchased or acquired the securities of Tactile Systems between May 7, 2018 and June 8, 2020, inclusive (the "Class Period").
All investors who purchased shares of Tactile Systems Technology, Inc. and incurred losses are urged to contact the firm immediately at [email protected] or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the shares of Tactile Systems Technology, Inc., you may, no later than November 30, 2020, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the shares of .
The filed Complaint alleges that Defendants failed to disclose to investors that:
- while the Company publicly touted a $4 plus billion or $5 plus billion market opportunity, in truth, the total addressable market for the Company's medical devices was materially smaller;
- to induce sales growth and share gains, Tactile engaged in illegal sales and marketing activities; and
- the Company's revenues were in part the product of unlawful conduct and thus unsustainable.
On June 8, 2020, research firm OSS Research published a report about the Company entitled "Strong Sell on Tactile Systems: Bloated Stock Needs Compression Therapy." In the report, OSS Research accused Tactile of overstating its total addressable market by nearly $4.7 billion, using a "'daisy-chaining kick-back scheme' that has resulted in rampant overprescribing and rapid market share gains at the expense of patients, insurers and the public," and concealing Medicare audits resulting in denials, for failure to establish medical necessity of whopping 71% of Tactile's submitted claims.
On this news, the Company's stock price fell $6.05 per share, or 11.69%, on June 9, 2020, to close at $45.67.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at [email protected], or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: [email protected], [email protected] or [email protected]
Tel: (800) 575-0735 or (212) 545-4774
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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP
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