NEW YORK, Aug. 10, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Rockwell Medical, Inc. (“Rockwell” or the “Company”) (NASDAQ: RMTI) in the United States District Court for the Eastern District of New York on behalf of a class consisting of investors who purchased or otherwise acquired Rockwell securities on the open market from March 16, 2018 and June 26, 2018, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ alleged violations of the Securities Exchange Act of 1934.
The Complaint alleges that on March 15, 2018, during aftermarket hours, the Company filed a Form 10-K for the fiscal year ended December 31, 2017 (the “2017 10-K”) with the SEC, which provided the Company’s year-end financial results and position and stated that the Company’s internal control over financial reporting and disclosure controls and procedures were effective as of December 31, 2017. The 2017 10-K was signed by Defendants Chioini and Klema, with Defendant Chioini signing on behalf of Rockwell. The 2017 10-K also contained signed certifications pursuant to the Sarbanes-Oxley Act of 2002 by Defendants Chioini and Klema attesting to the accuracy of financial reporting, the disclosure of any material changes to the Company’s internal controls over financial reporting, and the disclosure of all fraud.
The Complaint also alleges that throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Rockwell was aware that the Centers for Medicare and Medicaid Services will not pursue Rockwell's proposal for separate reimbursement for Triferic; (2) the estimated reserves in Rockwell's Form 10-Q for the quarter ended March 31, 2018 are misstated; (3) there was a material weakness in Rockwell's internal control over financial reporting; (4) consequently, Rockwell's internal control over financial reporting was ineffective during the Class Period; (5) Robert L. Chioini, former Chief Executive Officer of Rockwell, withheld material information regarding Triferic from Rockwell's auditor, corporate counsel and five independent directors of Rockwell's Board; and (6) consequently, Defendants' statements about Rockwell's business, operations and prospects were materially false and misleading and/or lacked reasonable bases at all relevant times.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the September 25, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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