SAN FRANCISCO, March 17, 2020 /PRNewswire/ -- Hagens Berman urges RTI Surgical Holdings, Inc. (NASDAQ: RTIX) investors who have suffered significant losses to submit their loss now. Certain investors may have valuable claims.
Relevant Holding Period: Before Mar. 17, 2020
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RTI Surgical Holdings, Inc. (RTIX) Investigation:
The investigation centers on whether RTI Surgical overstated revenues, including for its OEM business line.
In past years, RTI Surgical touted its revenue growth, claiming their strong performance was "powered by [the] ongoing strength of [its] OEM business." The reported results paved the way for RTI Surgical's sale of its OEM business to Montagu Private Equity LLP for $490 million, targeted to close during the first half of 2020. News of the transaction was well-received, as the Company's shares rose sharply after the sale was announced in January 2020.
But on Mar. 17, 2020, the Company announced it would not timely file its annual report for the fiscal year ended Dec. 31, 2019, due to an ongoing investigation "of current and prior period matters relating to the Company's revenue recognition practices involving the timing of revenue recognition with respect to certain contractual arrangements, primarily with OEM customers, including the accounting treatment, financial reporting and internal controls related to such arrangements."
This news drove the price of RTI Surgical shares sharply lower during intraday trading on Mar. 17, 2020.
"We're focused on recovering investors' losses and determining whether RTI Surgical intentionally pulled revenues forward to appear more profitable," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding RTI Surgical should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP