January 13, 2020 - An amended complaint was filed.
June 7, 2019 - An investor in shares of Ra Medical Systems, Inc. (NYSE: RMED) filed a lawsuit in the U.S. District Court for the Southern District of California over alleged violations of Federal Securities Laws by Ra Medical Systems, Inc. in connection with certain allegedly false and misleading statements made in connection with the Company’s September 2018 initial public offering (“IPO” or the “Offering”)
In September 2018, Ra Medical completed its initial public offering (“IPO”), issuing approximately 4.5 million shares of common stock priced at $17 per share. On March 14, 2019, the Company revealed that its fourth quarter 2018 financial results had been negatively impacted by issues related to the hiring and training of qualified sales personnel and certain production limitations.
According to the complaint the plaintiff alleges on behalf of purchasers of Ra Medical Systems, Inc. (NYSE: RMED) common shares, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that the Defendants failed to disclose to investors that the Company’s evaluation of sales personnel candidates was inadequate, that the Company’s training program for sales personnel was inadequate, that, as a result, the Company could not reasonably assure that its newly hired sales personnel were adequately experienced, that, as a result, the Company would suffer a shortage of qualified sales personnel, that the Company’s manufacturing process could not reasonably support increased catheter production, that, as a result, the Company would suffer production delays, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.