NEW YORK, Dec. 01, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Osiris Therapeutics, Inc. (“Osiris” or the “Company”) (Nasdaq: OSIR ) and certain of its present and former officers in the United District Court for the District of Maryland on behalf of a class consisting of all persons or entities who purchased Osiris securities between May 12, 2014 and November 16, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company overstated revenues from certain contracts and did not comply with the requirements of GAAP, thereby causing millions in losses to the Company; and (ii) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times. The Complaint further alleges that on November 16, 2015 the Company surprised investors by disclosing that it had “determined to correct the revenue recognition for three contracts which will result in a decrease in product revenues of $1.8 million in the first quarter of 2015, a decrease in product revenue of $1.0 million in the second quarter, an increase in product revenues of $0.8 million in the third quarter of 2015 and a decrease in product revenues of $1.1 million in 2014.” Thus, three restatements were made related to distributor relationships, which removed approximately $3.1 million of sales and shifted approximately $3.9 million of sales between quarters. As a result of these errors, the Company missed its revenue targets in three of the last four quarters.
Following this news, Osiris shares fell, dropping $3.02, or 21.53%, to close at $10.97 on November 17, 2015, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than January 22, 2016 . A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or 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 .
Please visit our website at http://www.gme-law.com for more information about the firm.
