The Law Offices of Frank R. Cruz continues its investigation on behalf of Tactile Systems Technology, Inc. ("Tactile" or the "Company") (NASDAQ: TCMD) investors concerning the Company and its officers’ possible violations of federal securities laws.
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On June 8, 2020, the investment analyst OSS Research issued a report on Tactile Medical entitled “Strong Sell On Tactile Systems (TCMD): Bloated Stock Needs Compression Therapy.” The OSS Research report claimed that “the true source of Tactile’s growth” is “a kick-back scheme that has resulted in rampant overprescribing.” The OSS Research report also alleged that “Medicare has recently launched an industry-wide audit in which Tactile has been disproportionately targeted. 70% of Tactile’s claims audited so far have been retroactively denied.”
On this news, the Company’s share price fell $5.28 per share, or over 10%, to close at $47.26 per share on June 8, 2020, thereby injuring investors.
On August 3, 2020, after the market closed, Tactile announced its second quarter 2020 financial results, reporting a 22% year-over-year decrease in total revenue.
On this news, the Company’s share price fell more than 16% during intraday trading on August 4, 2020.
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If you purchased Tactile securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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