A raft of shareholders sue Orthofix after the medical device company's plan to restate its financials sends share prices down 16% in a day.
Shareholders of Orthofix (NSDQ:OFIX) piled a raft of lawsuits on the medical device company, accusing it of failing to warn investors that would have to restate its financial results going back to 2011.
The July 29 announcement sent OFIX shares down more than 16% to $22.63 apiece. Share prices have hovered at that level ever since, prompting a purported class-action lawsuit in the U.S. District Court for Southern New York.
Late last month Orthofix said an audit of its books is prompting it to restate its financial results for 2011, 2012 and Q1 2013 after discovering revenues that were improperly recognized. The lawsuits allege that Lewisville, Texas-based Orthofix and its management failed to disclose the revenues issue, meaning its communications with investors were false.