SHAREHODLER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Repro Med Systems, Inc. d/b/a KORU Medical Systems of Class Action Lawsuit and Upcoming Deadline
NEW YORK, May 18, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Repro Med Systems, Inc. against KORU Medical Systems (“KORU” or the “Company”) (NASDAQ: KRMD) and some of its corporate officers. The class action lawsuit filed in The United States District Court for the Southern District of new Yorkand registered under 21-cv-04109, is on behalf of a class consisting of all persons and entities, other than Defendants, who have intervened or otherwise acquired KORU securities 4th August 2020 and January 25, 2021including (the “Class Period”). Plaintiff is pursuing claims against defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased KORU securities during the class period, you have up to May 25, 2021 ask the court to appoint you as the lead plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, please contact Robert S. Willoughby at the [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 7980. Those inquiring by email are asked to provide their postal address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
KORU designs, manufactures, and markets proprietary portable medical devices primarily for the ambulatory IV market.
The complaint alleges that throughout the class period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, business and prospects. In particular, the Defendants have not notified investors that: (1) ab January 2020KORU has increased the use of allowances, including growth discounts, to retain key customers and create incentives for growth. (2) With the rebates accrued, it was reasonably likely that the company’s net sales would decline. and (3) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and / or lacking a reasonable basis.
On 3rd November 2020After the market closed, KORU announced its financial results for the third quarter of 2020 and reported that net sales had sequentially decreased to $ 6.1 million. During a conference call the next day, the company attributed the lower sales to, among other things, “higher gross discount allowances for certain customers” and “payment discounts and distribution fees”.
In this news, the company’s stock fell $ 1.97or 32% to close at $ 4.16 per share on 4th November 2020in the case of unusually high trading volumes.
On January 25, 2021After the market closed, KORU announced its preliminary financial results for the 2020 financial year and expected sales of around $ 24.0 millionan increase of 3.4% compared to the previous year. The company listed the results among other things on “[s]lower net sales growth as a result of strengthening our contract position with major customers. “In the press release, KORU also announced that its CEO, Donald Pettigrew, resigned, effective immediately.
In the news, KORU’s share price fell $ 0.80 per share or 15.5% to close at $ 4.33 per share on January 26, 2021in the case of unusually high trading volumes.
The Pomerantz company with offices in new York, Chicago, The angel, and Paris is recognized as a leader in corporate, securities and antitrust litigation. Established by the late Abraham L. PomerantzPomerantz, known as the dean of class action, pioneered class action lawsuits. Today, more than 80 years later, the Pomerantz company continues its tradition of fighting for the rights of victims of securities fraud, fiduciary violations and corporate misconduct. The company has reclaimed numerous millions of dollars in damages on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP