An investigation for investors in OrthoPediatrics Corp. (NASDAQ:KIDS) shares over potential securities laws violations by OrthoPediatrics Corp. was announced.
San Diego, CA -- (SBWIRE) -- 12/16/2020 -- OrthoPediatrics Corp is under investigation over potential securities laws violations in connection with certain financial statements.
Investors who purchased shares of OrthoPediatrics Corp. (NASDAQ: KIDS), have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on whether a series of statements by OrthoPediatrics Corp. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Warsaw, NJ based OrthoPediatrics Corp., a medical device company, designs, develops, and markets anatomically appropriate implants and devices for the treatment of children with orthopedic conditions in the United States and internationally. OrthoPediatrics Corp. reported that its annual Total Revenue rose from $57.55 million in 2018 to $72.55 million in 2019, and that its normalized Loss increased from $12.02 million in 2018 to $12.68 million in 2019.
On December 2, 2020, a report was published entitled "OrthoPediatrics Corp. (KIDS): Even Channel Stuffing Can't Save This Company". The report described OrthoPediatrics as having "engaged in a channel stuffing scheme that has systematically and significantly overstated revenues." Among other issues, the report alleged 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" and described it as "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."
Those who purchased shares of OrthoPediatrics Corp. (NASDAQ: KIDS) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.