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Shareholder Class Action Filed Against Osiris Therapeutics, Inc.

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Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired shares of Osiris Therapeutics, Inc. (Nasdaq: OSIR) (“Osiris” or the “Company”) on behalf of purchasers of the Company’s securities between May 12, 2014 and November 16, 2015, inclusive (the “Class Period”).
 

Osiris investors may receive additional information about the case by clicking the link "Join this Class Action" above. 

According to the complaint, Osiris researches and develops biosurgery solutions, focusing on products for wound care, cartilage repair and orthopedics, to harness the ability of cells and novel constructs to promote the body’s natural healing.

The shareholder class action complaint alleges that Osiris and certain of its executive officers made a series of materially false and misleading statements to investors during the Class Period about the Company’s business, operational and financial information.  Specifically, the defendants are alleged to have made false and misleading statements and/or failed to disclose that: (i) the Company overstated revenues from several contracts and failed to follow GAAP standards, fixing its financial statements only a year and half later and causing millions in losses to the Company and Investors; and (ii) as a result of the foregoing, Osiris’s public statements were materially false and misleading at all relevant times.

As further detailed in the complaint, on November 16, 2015, Osiris disclosed that it had “determined to correct the revenue recognition for three contracts which will result in a decrease in product revenues of $1.8 million in the first quarter of 2015, a decrease in product revenue of $1.0 million in the second quarter, an increase in product revenues of $0.8 million in the third quarter of 2015 and a decrease in product revenues of $1.1 million in 2014.” In sum, three restatements were made regarding distributor relationships, which completely removed about $3.1 million of sales and shifted about $3.9 million of sales between quarters.  As a result of these errors, Osiris missed its revenue targets in three of the last four financial quarters.

On this news, shares of Osiris’ common stock fell $3.01 per share, or over 21.5%, to close on November 17, 2015 at $10.97 per share, on unusually heavy trading volume.

If you are a member of the class described above, you may no later than January 22, 2016, move the Court to serve as lead plaintiff of the class, if you so choose.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.

Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.

CONTACT:  

Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087

1-888-299-7706 (toll free) or 1-610-667-7706

Please list your purchase and sale transaction(s) for Osiris Therapeutics, Inc. (Nasdaq: OSIR) between May 12, 2014 and November 16, 2015, inclusive (the “Class Period”):

SUBMIT YOUR INFORMATION
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Date
# of Shares
Price per Share
Date
Principal Amount
Amount Paid
Series or CUSIP
Date
# of Contracts
Price per Contract
Exercise Price
Expiration Date
Did you purchase shares of Osiris Therapeutics, Inc. prior to the Class Period?
Are you a current or former employee of Osiris Therapeutics, Inc. ?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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