NEW ORLEANS, May 22, 2020 / PRNewswire / – Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., partner of the law firm Kahn Swick & Foti, LLC (“KSF”), announces that KSF has opened an investigation into Ra Medical Systems, Inc. (NYSE: RMED).
Sure March 14, 2019, the Company reported revenue in 4Q2018 significantly lower than expected due to sales personnel problems and certain production limitations, assuring investors that the problems had been resolved. Then the August 12, 2019, the company has revealed inconsistencies in its manufacturing process, an increasing number of failed product calibrations and an internal investigation by its audit committee. Sure September 27, 2019, Ra revealed that it launched a “voluntary recall” of its DABRA catheters “due to a change in product labeling” to reflect a “two month expiration, replacing its previous expiration of the shelf life twelve months “.
Then the October 31, 2019, the Company revealed a wide range of problems discovered during its investigation, including frequent product calibration failures and even occasional overheating, posing risks to patients; that product failures were the real cause of its negative financial performance rather than production limitations; inappropriate marketing of its DABRA catheter for use in unapproved medical procedures; failure to properly document payments to physicians; and, the receipt of a request for a civil investigation by the United States Department of Justice indicating whether it has fraudulently obtained marketing authorization for DABRA or made illicit payments to healthcare providers. Sure November 29, 2019, the Company revealed that the DOJ investigation had become an open criminal investigation.
The Company has been prosecuted in a securities class action for failing to disclose important information, in violation of federal securities laws, which is still in progress.
KSF’s investigation focuses on whether the officers and / or directors of Ra Medical have breached their fiduciary duties to Ra Medical shareholders or otherwise violated federal or state laws.
If you have information that could help KSF in its investigation, or if you have long held Ra Medical shares and wish to discuss your legal rights, you can, without obligation or cost to you, call toll free at 1- 877-515 -1850 or send an email to KSF managing partner Lewis Kahn ([email protected]), or visit https://www.ksfcounsel.com/cases/nyse-rmed/ for more information.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the leading law firms specializing in securities litigation in the country. KSF serves a variety of clients – including public institutional investors, hedge funds, fund managers and retail investors – in seeking recoveries for investment losses resulting from corporate fraud or embezzlement by listed companies. KSF has offices in New York, California and Louisiana.
To learn more about KSF, you can visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
Lewis Kahn, Management partner
1100, rue Poydras, office 3200
New Orleans, LA 70163
SOURCE Kahn Swick & Foti, LLC