WASHINGTON, Jan. 11, 2016 (GLOBE NEWSWIRE) -- Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Osiris Therapeutics, Inc., (“Osiris” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Class action lawsuits have been filed in the U.S. District Court for the District of Maryland and the U.S. District Court for the Southern District of New York by other law firms on behalf of purchasers of the common stock of Osiris Therapeutics, Inc. (NASDAQ:OSIR) between May 12, 2014 and November 20, 2015, inclusive (the “Class Period”).
The complaints allege that Osiris and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) Osiris improperly recognized revenue under contracts it had with its distributors; (2) Osiris's disclosure controls and procedures were not effective as of December 31, 2014, March 31, 2015, or June 30, 2015; and (3) as a result, Defendants' statements about Osiris's business and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On November 16, 2015, Osiris announced that it had to “correct the revenue recognition for three contracts which will result in a decrease in product revenues of $1.8 million in the first quarter of 2015, a decrease in product revenue of $1.0 million in the second quarter, an increase in product revenues of $0.8 million in the third quarter of 2015 and a decrease in product revenues of $1.1 million in 2014.” Following this news, the price of Osiris shares dropped $3.02, or 21%, to close at $10.97 on November 17, 2015.
After the market close on November 20, Osiris filed a Form 8-K reporting that its previously issued financials for the first and second quarters of 2015 should no longer be relied upon and would need to be restated due to the revenue recognition errors described above, and that it had a material weakness in its internal controls as of December 31, 2014, March 31, 2015 and June 30, 2015. The price of Osiris shares fell from $10.73 to $10.20 on Monday, November 23.
Osiris reported that its auditor BDO USA, LLP had resigned and that it had retained Ernst & Young on December 17, 2015. In the Company’s Form 8-K announcing BDO’s resignation, the Company reported a disagreement with the auditor regarding Osiris’s revenue recognition and the adequacy of its internal controls.
Cohen Milstein encourages all investors who purchased Osiris common stock between May 12, 2014 and November 20, 2015 or former employees with information concerning this matter to contact the firm.
If you are an Osiris shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than January 22, 2016 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over two billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Rhys Tucker
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Suite 500 East
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; rtucker@cohenmilstein.com
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