SAN FRANCISCO, Nov. 21, 2020 (GLOBE NEWSWIRE) — Hagens Berman urges Tactile Systems Technology (NASDAQ: TCMD) investors to submit their losses now. The firm has filed a securities fraud class action and certain investors may have valuable claims.
Hagens Berman’s Tactile Securities Litigation
Throughout the Class Period, Defendants allegedly misrepresented and concealed that: (1) while Tactile publicly touted a $4 plus billion or $5 plus billion market opportunity, in truth, the total addressable market for Tactile’s medical devices was materially smaller; (2) to induce sales growth and share gains, Tactile engaged in illegal sales and marketing activities; and (3) Tactile’s revenues were in part the product of unlawful conduct and thus unsustainable.
The truth began to emerge on Mar. 20, 2019, when an amended federal Qui Tam complaint filed against Tactile was unsealed, which contained detailed allegations of illegal sales practices on the part of Tactile, causing the Company to submit fraudulent claims to Medicare and the VA.
Then, on Feb. 21, 2020, the court issued an order in the Qui Tam Action, denying Tactile’s motion to dismiss in its entirety.
Finally, on June 8, 2020, research firm OSS Research published a scathing report about the Company, accusing Tactile of using a “‘daisy-chaining’ kickback scheme that has resulted in rampant overprescribing and rapid market share gains at the expense of patients, insurers and the public.”
All told, these disclosures caused Tactile securities to decline precipitously, wiping out significant shareholder value.
If you are a TCMD investor, click here to discuss your legal rights with Hagens Berman. A copy of the Complaint can be obtained here.
“We’re focused on investors’ losses and proving Tactile deceived investors by engaging in illegal marketing schemes to induce sales growth,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Tactile 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 TCMD@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895