NEW YORK (Legal Newsline) – A man is suing a Maryland regenerative medicine products company and several of its chief officers over claims of artificially inflated stock prices.
Dave Krueger, individually and for all others similarly situated, filed a class action lawsuit Nov. 24 in the U.S. District Court for the Southern District of New York against Osiris Therapeutics, Lode Debrabandere, Gregory Law, and Phillip R. Jacoby Jr., alleging violations of the Federal Securities Laws.
The suit states Krueger purchased Osiris common stock, traded on the NASDAQ under the symbol OSIR, during the class period, between May 12, 2014 and Nov. 20.
The suit states Osiris and the individual defendants made false and misleading statements in the company's quarterly reports during the class period.
Specifically, the suit claims, the defendants failed to disclose in their reports that Osiris improperly recognized revenue under contracts it had with distributors, that Osiris' disclosure controls and procedures were not effective as of Dec. 31, 2014, March 31, and June 30, and that, as a result, the defendants' statements about the company's business and prospects were materially false and misleading, or lacked a reasonable basis at all relevant times.
After the close of trading on Nov. 16, Osiris then reported that its previous financial statements needed to be corrected, showing a decrease in product revenues. On this news, shares of Osiris securities fell $3.01 per share, almost 22 percent from its previous closing price on Nov. 16, damaging investors.
After trading closed on Nov. 20, Osiris then reported its previous financial statements could no longer be relied upon, and that the company had deficient internal controls. On this news, Osiris shares fell 53 cents per share, almost 5 percent from its closing price on Nov. 20, further damaging investors.
Krueger and others in the class seek a judgment requiring defendants to pay damages they sustained, plus interests, attorney fees, expert fees, and other costs. Krueger is represented by attorneys Phillip Kim and Laurence M. Rosen of The Rosen Law Firm in New York.
U.S. District Court for the Southern District of New York Case number 1:15-CV-09290-JGK