
Kewaunee Scientific Corporation (KEQU)
Whether directors and officers of Kewaunee Scientific Corporation (KEQU) breached their fiduciary duties to the company and its shareholders.
Investigation
12/10/2021
Initial Lawsuit
12/10/2021
Lawsuit Progression
02/08/2022
Investigation regarding an anonymous (short) report about Organogenesis’ alleged improper billing to the government for $250 million annually and improper tactics and practices.
10/12/2021
An anonymous report is posted on Value Investors Club‘s website, alleging that “Organogenesis has been ripping off the government to the tune of $250mm+ annually” because its “game” appears to have ended recently when “CMS dropped ASP coverage of Affinity, ~40% of ORGO sales and all profits.” The author also expressed his opinion stating that “Regardless, new legislation going into effect January 1st 2022 prevents ORGO from ever playing this game again. ORGO is a zero.”
The report also alleged that the company had set the price for its new wound covering, Affinity, “exorbitantly high” which Medicare reimbursed, while making the product lucrative for doctors to use through large rebates.
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$10.35 | $12.05 | $-1.7 | -14.11% |
Plaintiff brings this federal securities class action on behalf of a class consisting of all persons and entities other than defendants that purchased or otherwise acquired Organogenesis securities between March 17, 2021 and October 11, 2021, both dates inclusive.
According to the complaint, 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 allegedly failed to disclose to investors that:
(i) Organogenesis improperly billed the federal government for its Affinity and PuraPly XT products by, among other things, setting the price for those products multiple times higher than similar products;
(ii) the company improperly induced doctors to use its Affinity and PuraPly XT products through lucrative reimbursements;
(iii) as a result of all the foregoing, the company’s revenue and profits derived from its Affinity and PuraPly XT products were at least in substantial part unsustainable; and
(iv) as a result, the company’s public statements were materially false and misleading at all relevant times.
The lead plaintiff deadline has passed, we will update this page as the lawsuit progresses.
Last event retrieved on 10/02/2022.
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