NEW YORK, NY / ACCESSWIRE / July 31, 2019 / Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Omnicell, Inc. (“Omnicell” or the “Company”) (NASDAQ:OMCL) of the September 16, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Omnicell stock or options between October 25, 2018 and July 11, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/OMCL. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Omnicell securities between October 25, 2018 and July 11, 2019 (the “Class Period”). The case, Bursick v. Omnicell, Inc., No. 3:19-cv-04150 was filed on July 18, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose material adverse facts about the Company’s business, operations, and prospects.
Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company recognized revenue for certain transactions before fulfilling its performance obligations; (2) that the Company engaged in improper accounting practices to meet revenue targets; (3) that the Company experienced weaker demand for new product lines than it had previously projected; (4) that, as a result, the Company would be required to write-off certain inventory; (5) that the Company misclassified certain expenses as capitalized expenditures; and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects and prospects were materially misleading and/or lacked a reasonable basis.
On July 11, 2019, GlassHouse Research LLC published a report alleging that Omnicell prematurely recognized over $38 million in sales. The report also alleged that new product lines had been pushed onto customers, who were hesitant to purchase more inventory because of implementation issues, and that the Company will need to write off $23 million in obsolete inventory.
On this news, Omnicell’s share price fell from $86.52 per share on July 10, 2019 to $75.11 per share on July 11, 2019-a $11.41 or a 13.19% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Omnicell’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE: Faruqi & Faruqi, LLP