BOSTON, July 19, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, reminds investors that it is investigating the following companies and certain of their officers for potential violations of the federal securities laws: Commercial Vehicle Group, Inc. (NASDAQ: CVGI); Tactile Systems Technology, Inc. (NASDAQ: TCMD), and BELLUS Health, Inc. (NASDAQ: BLU). Further details about the investigations are described below.
CVGI Shareholders – Click Here: https://www.blockleviton.com/cases/cvgi
TCMD Shareholders – Click Here: https://www.blockleviton.com/cases/tcmd
BLU Shareholders – Click Here: https://www.blockleviton.com/cases/bellus
Commercial Vehicle Group, Inc. (NASDAQ: CVGI)
CVGI, through its subsidiaries, is a supplier of electrical wire harnesses, seating systems, and a full range of other cab related products for global commercial vehicle markets. On March 16, 2020, after the market closed, CVGI issued a press release announcing its fourth quarter and full year 2017 financial results. The Company disclosed that certain financial statements for fiscal 2018 and 2019 periods should no longer be relied upon due to misstatements. CVGI’s Audit Committee had determined that, among other things, for the nine months ended September 30, 2019, cost of revenues were understated by $4.6 million, net income was overstated by $3.5 million, and diluted earnings per share was overstated by $0.11. On this news, CVGI’s share price fell over 38% over the next two trading days, to close at just $1.56 per share on March 18, 2020.
Tactile Systems Technology, Inc. (NASDAQ: TCMD)
On June 8, 2020, OSS Research published a report entitled “Strong Sell on Tactile Systems: Bloated Stock Needs Compression Therapy,” regarding Tactile Systems. In this report, OSS Research asserted, among other things, that “the likely true source of Tactile’s growth” is “a kickback arrangement . . . resulting in rampant over-prescribing” and that “Medicare has launched an audit, and data reveals Tactile has been found non-compliant on 71% of its claims.” The OSS Research report further noted that “[s]ince 2017, Tactile has seen multiple key departures” among its executive leadership. On this news, TCMD’s stock price fell $5.28 per share, or approximately 10%, to close at just $47.26 per share on June 8, 2020.
BELLUS Health, Inc. (NASDAQ: BLU)
The Firm’s investigation is centered on BELLUS’ statements concerning the efficacy of its lead drug candidate, BLU-5937, which is BELLUS’ only drug in a clinical trial. BLU-5937 is designed to treat refractory chronic cough, which impacts millions of patients. Although competing treatments exist, other drugs have an associated side effect of taste loss. BELLUS has promoted BLU-5937 as also targeting refractory chronic cough, but with the specific design of reducing the likelihood of taste loss. On July 6, 2020, BELLUS announced the topline results for its Phase 2 RELIEF trial for BLU-5937. The trial failed to achieve its primary endpoint of a statistically significant reduction from baseline in awake coughs per hour at eight time points in the four doses tested. The drug was unable to outperform placebo. On this news, shares of BELLUS common stock plummeted over 70%, closing at just $3.40 per share on July 6, 2020.
If you purchased or acquired shares of CVGI, TCMD, or BLU and have questions about your legal rights or possess information relevant to these matters, please contact Block & Leviton attorneys at (617) 398-5600, via email at email@example.com, or via the links provided above.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
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