For Immediate Release
WASHINGTON, D.C. – Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Rockwell Medical, Inc. (“Rockwell” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Eastern District of New York by another law firm on behalf of purchasers of the common stock of Rockwell Medical, Inc. (NASDAQ: RMTI) between March 16, 2018 and June 26, 2018, inclusive (the “Class Period”).
The Centers for Medicare and Medicaid Services (“CMS”) denied Rockwell’s request for a separate reimbursement of the Company’s lead product, Triferic, an iron maintenance therapy for patients who lose iron during dialysis. The complaint alleges that Rockwell and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Rockwell was aware that CMS would not pursue Rockwell’s proposal for separate reimbursement for Triferic; (2) the Company’s first quarter 2018 Form 10-Q misstated estimate reserves; (3) there was a material weakness in Rockwell’s internal controls over financial reporting; (4) Rockwell’s internal controls over financial reporting were ineffective during the Class Period; (5) Defendant Robert L. Chioini, former Rockwell CEO, withheld material information regarding Triferic from Rockwell’s auditor, corporate counsel and five independent directors of the Board; and (6) as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked reasonable bases at all relevant times.
On May 22, 2018, Rockwell announced the termination of CEO Chioini, effective immediately, and the appointment of a Special Transition Committee to oversee Rockwell’s day-to-day operations. Chioini refused to accept his firing, and on May 23, 2018, filed a Form 8-K and issued a press release alleging that five members of the board orchestrated his ouster after he and CFO Thomas E. Klema hired outside counsel to investigate allegations in a shareholder demand letter accusing the directors of breach of fiduciary duty.
On June 27, 2018, Rockwell announced the resignation of its auditor Plante & Moran, PLLC, effective immediately. In a letter explaining its decision, Plante & Moran stated:
We have been made aware of the attached e-mail received by Rockwell Medical, Inc. (Rockwell) on March 27, 2018 in connection with its ongoing pursuit of Triferic special reimbursement status. This e-mail was not disclosed to us in the course of our review procedures related to the financial statements for the quarter ended March 31, 2018 (Q1) included in Rockwell’s form 10Q filed on May 15, 2018. This e-mail and its contents are inconsistent with representations made to us by Rockwell, orally and in writing, in connection with our review procedures.
The price of Rockwell Medical fell from $5.26 on June 26, 2018, to $4.52 on June 27, and closed at $4.41 on June 28.
Cohen Milstein encourages all investors who purchased Rockwell Medical common stock between March 16, 2018 and June 26, 2018, or former employees with information concerning this matter to contact the firm.
If you are a Rockwell shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than September 25, 2018 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600