Lawsuit filed for Investors in shares of Repro Med Systems, Inc. (NASDAQ: KRMD)

An investor, who purchased shares of Repro Med Systems, Inc. (NASDAQ: KRMD), filed a lawsuit over alleged violations of Federal Securities Laws by Repro Med Systems, Inc. d/b/a KORU Medical Systems.

Investors who purchased shares of Repro Med Systems, Inc. (NASDAQ: KRMD) have certain options and for certain investors are short and strict deadlines running. Deadline: May 26, 2021. NASDAQ: KRMD investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Chester, NY based Repro Med Systems, Inc., doing business as KORU Medical Systems, designs, manufactures, and markets portable medical devices primarily for the ambulatory infusion market in the United States and internationally.

On November 3, 2020, after the market closed, Repro Med Systems, Inc announced its third quarter 2020 financial results, reporting that net sales declined sequentially to $6.1 million. During the 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.”

Then, on January 25, 2021, after the market closed, Repro Med Systems, Inc announced its preliminary financial results for fiscal 2020, expecting revenue of approximately $24.0 million, an increase of 3.4% over the prior year. The Company attributed the results to, among other things, “[s]lower growth in net revenue as a result of strengthening our contractual position with large customers.” Repro Med Systems, Inc also announced that its CEO, Donald Pettigrew, resigned, effective immediately.
Shares of Repro Med Systems, Inc. (NASDAQ: KRMD) declined to as low as $3,27 per share on March 5, 2021.

The plaintiff claims that between August 4, 2020 and January 25, 2021, the Defendants failed to disclose to investors that starting in January 2020, KORU ramped up the use of allowances, including growth rebates, to retain key customers and to incentivize growth, that as the rebates accrued, the Company’s net sales were reasonably likely to decline, and that 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.

Those who purchased shares of Repro Med Systems, Inc. (NASDAQ: KRMD) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.