Pomerantz LLP has been appointed as Lead Counsel on behalf of the lead plaintiff in a securities action brought on behalf of a class of defrauded investors concerning allegations that Repro Med Systems, Inc. d/b/a KORU Medical Systems materially misled investors by failing to disclose that sales incentives used to promote growth were reasonably likely to eventually lead to a decline in net sales.
Allegations against KORU include that: (i) starting in January 2020, the Company ramped up the use of allowances, including growth rebates, to retain key customers and to incentivize growth; (ii) as the rebates accrued, the Company’s net sales were reasonably likely to decline; and (iii) 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.
KORU designs, manufactures, and markets proprietary portable medical devices, primarily for the ambulatory infusion market.
The Pomerantz team was led by Jeremy Alan Lieberman (Picture).
Involved fees earner: Jeremy Lieberman – Pomerantz LLP ;
Law Firms: Pomerantz LLP ;
Clients: Pavlick Brian;