Too v. Rockwell Medical Inc., et al 1:18-cv-04253 – On July 27, 2018, investors sued Rockwell Medical Inc. (Rockwell, RMTI, or the Company) in United States District Court, Eastern District of New York. The Rockwell Medical class action alleges that plaintiffs acquired Rockwell stock at artificially inflated prices between March 16, 2018 and June 26, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information about the RMTI Lawsuit, please read the following report. We encourage reaching out to us with any questions or concerns as well.

Summary of the Allegations

Company Background

As an “integrated biopharmaceutical company,” Rockwell (NASDAQ: RMTI) focuses finding solutions for patients suffering from end-stage renal and chronic kidney diseases both in the United States and also globally.

Founded in 1995, the Company has been trading on the NASDAQ since 1998. By 2001, Rockwell had two manufacturing facilities in Michigan and Texas. It expanded its operations further by opening another production facility in South Carolina in 2005. The Company also reached $25 million in revenue that year, and surpassed $50 million revenue three years later.

Summary of Facts

Rockwell and two of its current and former officers and/or directors are now accused of deceiving investors by lying and withholding critical information about the Company’s business practices and prospects during the Class Period.

Specifically, they are accused of omitting truthful information about the status of its proposal for separate reimbursement for one of its products, efficacy of its internal controls over financial reporting, and its CEO’s conduct from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Rockwell stock to trade at artificially inflated prices during the time in question.

The truth came out in a series of events that transpired between May 10, 2018 and June 27, 2018, when the Company filed a form with the SEC announcing the resignation of its auditors, effective immediately.

The June 27 announcement also included material related to the Company’s pursuit of separate reimbursement for Triferic from the CMS. Specifically, the material revealed that CMS did not plan to approve separate reimbursement for the medication, which was contrary to what the Company led its auditors to believe.

A closer look…

As alleged in the July 27 complaint, the Company repeatedly made false and misleading public statements during the Class Period.

For example, on a form filed with the SEC on March 15, 2018, the Company said in pertinent part: “While we cannot predict the outcome or timing of the CMS review, we anticipate that Triferic will receive separate reimbursement as a result of our extensive efforts in working with policy makers, Congress and stakeholders within the dialysis industry.”

On the same form, the Company also said, “We believe Triferic is a new innovative therapy, and we are seeking separate reimbursement for Triferic.”

Then, on another form filed with the SEC on May 10, 2018, the Company said in relevant part: “”We have submitted information to CMS that highlights the improved clinical benefits that Triferic provides to patients, as well as the significant cost savings Triferic delivers to both Medicare and dialysis providers. We cannot predict the outcome or timing of CMS’s process and there can be no assurance of it, or when we might receive separate reimbursement for Triferic from CMS.”

Impact of the Alleged Fraud on Rockwell’s Stock Price and Market Capitalization

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: The deadline to file for lead plaintiff in this class action is September 25, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Rockwell common stock using court approved loss calculation methods.

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About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.