Orthofix is a medical device company that manufactures and sells medical equipment used principally by musculoskeletal medical specialists for spine and orthopedic applications. On July 29, 2013, Orthofix issued a press release announcing that it was delaying the release of its financial results for the second quarter of 2013 and that additional time was needed to review matters relating to revenue recognition for prior periods. A week later on August 6, 2013, Orthofix issued a second press release stating that it would restate its financial statements for fiscal years 2011 and 2012 and the first quarter of 2013.
Shareholders lost over 16% of their marker value in one trading day.
This class action seeks answers: Did senior executives of Orthofix knowingly misrepresent the financial condition of the company prior to the summer of 2013?
On July 29, 2013, OFIX traded straight down, from the prior days close of 27.40 to 22.94. THis represents over 86.5 million in shareholder loss in a single day, or 16.27% of the value of the entire company.
The complaint alleges that Orthofix and certain senior executives misrepresented or failed to disclose the following adverse facts, which were known to defendants or recklessly disregarded by them:
As a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s financial performance and outlook.