NEW YORK, Aug. 13, 2018 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Rockwell Medical, Inc. ("Rockwell" or the "Company") (NASDAQ: RMTI). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Rockwell and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 10, 2018, Rockwell disclosed that the Company "received a letter dated April 24, 2018 from the Securities and Exchange Commission requesting certain information generally with respect to the status of [Center for Medicare and Medicaid Services' ("CMS")] determination of separate reimbursement status for Triferic and our current decision not to actively market and sell Triferic without such separate reimbursement."
On May 22, 2018, during aftermarket hours, Rockwell announced that Robert Chioini, Rockwell's President and Chief Executive Officer, had been terminated effective immediately.
On May 23, 2018, NASDAQ announced that "trading in the company's stock had been halted". On May 23, 2018, Chioini issued a press release that contained a letter to Rockwell shareholders purporting to explain the circumstances surrounding his termination and raising questions about possible breaches of fiduciary duties by the Company's board. On this news, upon resumption of trading on May 25, 2018, Rockwell's share price fell $0.37, or over 6%, over two consecutive trading days to close at $5.57 on May 29, 2018, damaging investors.
On June 27, 2018, during pre-market hours, Rockwell announced the resignation of its auditor, Plante & Moran, PLLC, effective immediately, and disclosing communications indicating that CMS had declined Rockwell's proposal for separate reimbursement status for Triferic, as well as a statement by the auditor that those communications were "inconsistent with representations made to us by Rockwell, orally and in writing." The auditor further stated, inter alia, that there was a material weakness in Rockwell's internal controls over financial reporting. On this news, Rockwell's share price fell $0.85, or over 16%, over two consecutive trading days to close at $4.41 on June 28, 2018. Then, on June 29, 2018, Rockwell issued a press release, stating that "it appears that Chioini and perhaps others withheld information regarding Triferic from the Company's auditor, corporate counsel and five independent directors of the Board."
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Robert S. Willoughby
888-476-6529 ext. 9980
SOURCE Pomerantz LLP