OrthoPediatrics Corp. (KIDS)
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of OrthoPediatrics Corp. ("OrthoPediatrics" or "the Company") (NASDAQ: KIDS). The investigation concerns whether OrthoPediatrics and certain of its officers and/or directors have violated federal securities laws.
On December 2, 2020, Culper Research (“Culper”) published a report entitled “OrthoPediatrics Corp. (KIDS): Even Channel Stuffing Can’t Save This Company”. The Culper report described OrthoPediatrics as having “engaged in a channel stuffing scheme that has systematically and significantly overstated revenues.” Among other issues, the Culper report alleged that “the Company has abused its ability to book revenues upon shipment by selling and shipping excess product directly to its distributors, many of whom are exclusive to the Company” and described it as “concerning that many of the Company’s ‘exclusive distributors’ are simply former OrthoPediatrics employees who have formed their own distributorships, often while still employed at the Company.” On this news, OrthoPediatrics’ stock price fell $4.12 per share, or 9.13%, to close at $41.02 per share on December 2, 2020. Then, on December 31, 2020, OrthoPediatrics announced that the U.S. Securities and Exchange Commission had commenced a review of the Company on December 15, 2020. Finally, on January 13, 2021, Culper published a letter addressed to Deloitte & Touche, OrthoPediatrics’ auditor, stating, in part: “[w]e believe OrthoPediatrics has failed to record proper inventory write-downs and/or establish reserves for product obsolescence.” On this news, OrthoPediatrics’ stock price fell $2.08 per share, or 4.82%, to close at $41.05 per share on January 13, 2021.
If you are aware of any facts relating to this investigation, or purchased OrthoPediatrics shares, you can assist this investigation by visiting contacting the firm. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
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.