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New York, New York--(Newsfile Corp. - May 22, 2021) - Pomerantz LLP announces that a class action lawsuit has been filed against Repro Med Systems, Inc. d/b/a KORU Medical Systems ("KORU" or the "Company") (NASDAQ: KRMD) and certain of its officers. The class action, filed in the United States District Court for Southern District of New York, and docketed under 21-cv-04109, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired KORU securities between August 4, 2020 and January 25, 2021, inclusive (the "Class Period"). Plaintiff pursues claims against the Defendants under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased KORU securities during the Class Period, you have until May 25, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
KORU designs, manufactures, and markets proprietary portable medical devices, primarily for the ambulatory infusion market.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) starting in January 2020, KORU ramped up the use of allowances, including growth rebates, to retain key customers and to incentivize growth; (2) as the rebates accrued, the Company's net sales were reasonably likely to decline; and (3) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On November 3, 2020, after the market closed, KORU announced its third quarter 2020 financial results, reporting that net sales declined sequentially to $6.1 million. During a conference call the next day, the Company attributed the lower sales to, among other things, "higher allowances for gross rebates for certain customers" and "payment discounts and distribution fees."
On this news, the Company's stock fell $1.97, or 32%, to close at $4.16 per share on November 4, 2020, on unusually heavy trading volume.