NEW YORK, NY / ACCESSWIRE / December 1, 2015 / Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC announces an expanded class period in class action lawsuit against Osiris Therapeutics, Inc. ("Osiris" or the "Company") (NasdaqGM: OSIR). The class action filed in the United District Court for the District of Maryland is on behalf of a class consisting of all persons or entities who purchased Osiris securities between May 12, 2014 and November 20, 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 AS FOLLOWS:
Throughout the Class Period defendants made materially false and misleading statements regarding the Company's business, operational and financial information. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company overstated revenues from several contracts and failed to follow GAAP standards, fixing its financial statements only a year and half later and causing millions in losses to the Company and Investors; and (ii) as a result of the foregoing, Osiris's public statements were materially false and misleading at all relevant times.
It is alleged that on November 16, 2015, Osiris surprised investors by disclosing that it has "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 completely removed about $3.1 million of sales and shifted about $3.9 million of sales between quarters. As a result of these errors, Osiris missed its revenue targets in three of the last four quarters.
Following this news, Osiris shares fell sharply. They dropped $3.02, or 21.53%, to close at $10.97 on November 17, 2015, damaging investors.
THE FOLLOWING INFORMATION WAS NOT INCLUDED IN THE INITIAL COMPLAINT:
On November 20, 2015, the Company announced in an 8-K, "While the impact of these modifications to the Company's revenue recognition practices for certain distribution contracts is immaterial to its annual financial statements for the year ended December 31, 2014, the impact on the quarterly periods ending March 31, 2015 and June 30, 2015 is material. As a result, the Company will restate its previously issued interim financial statements for first quarter and second quarter of 2015 through the filing of amended Quarterly Reports on Form 10-Q for the quarters ended March 31, 2015 and June 30, 2015. These amended quarterly reports will be filed with the SEC as soon as administratively possible. On November 16 2015, management of the Company, in consultation with the Audit Committee of the Board of Directors and the Company's independent registered public accounting firm, concluded that investors should no longer rely on the Company's previously issued financial statements for the quarterly periods ended March 31, 2015 and June 30, 2015 and on any prior earnings releases or other communications relating to such periods."
Following this news, shares of Osiris fell $0.53 or almost 5% from its previous closing price on November 20, 2015, to close at $10.20 per share on November 23, 2015, further damaging investor.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Coordinator Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email info@bgandg.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Osiris you have until January 22, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Eitan Kimelman 212-697-6484
info@bgandg.com
SOURCE: Bronstein, Gewirtz & Grossman, LLC
