Rockwell Medical, Inc. (NASDAQ: RMTI) Investor Securities Class Action Lawsuit 07/27/2018

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Company Name(s): 
Rockwell Medical
Case Name: 
Rockwell Medical Shareholder Class Action Lawsuit 07/27/2018
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: RMTI
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
07/27/2018
Class Period Begin: 
03/16/2018
Class Period End: 
06/26/2018
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
09/25/2018
Date Settled: 
09/12/2019
Settlement Amount: 
$3,700,000
Deadline to Participate in Settlement: 
02/07/2020
Settlement Notice: 
Settlement Proof: 
Summary: 

September 12, 2019 - The court preliminarily approved the settlement.

August 8, 2019 - Parties filed a stipulation of settlement.

An investor in shares of Rockwell Medical, Inc. (NASDAQ: RMTI) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Rockwell Medical, Inc. in connection with certain allegedly false and misleading statements made between March 16, 2018 and June 26, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Rockwell Medical, Inc. (NASDAQ: RMTI) common shares between March 16, 2018 and June 26, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between March 16, 2018 and June 26, 2018, the Defendants' made false and/or misleading statements and/or failed to disclose that: Rockwell was aware that the Centers for Medicare and Medicaid Services will not pursue Rockwell's proposal for separate reimbursement for Triferic, that the estimated reserves in Rockwell's Form 10-Q for the quarter ended March 31, 2018 are misstated, that there was a material weakness in Rockwell's internal control over financial reporting, that consequently, Rockwell's internal control over financial reporting was ineffective between March 16, 2018 and June 26, 2018, that 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 that as a result, Defendants' statements about Rockwell's business, operations and prospects were materially false and misleading and/or lacked reasonable bases at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

Wixom, MI based Rockwell Medical, Inc. operates as an integrated biopharmaceutical company targeting end-stage renal and chronic kidney diseases in the United States and internationally. Rockwell Medical, Inc. reported that its annual Total Revenue rose from $53.28 million in 2016 to $57.3 million in 2017 and that its Net Loss increased from $19.8 million in 2016 to $25.92 million in 2017.

On May 22, 2018, Rockwell Medical, Inc announced that the Company’s President and Chief Executive Officer, Robert Chioini, had been terminated from his positions, effective immediately.

However, on May 23, 2018, a letter to shareholders was published on behalf of Mr. Chioini explaining that Mr. Chioini had called an emergency Board meeting for the purpose of discussing alleged breaches of fiduciary duties and other possible violations of securities laws by various directors the Company, and that those directors whose conduct was the subject of the alleged breaches of fiduciary duties voted to fire Mr. Chioini.