The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Tactile Systems Technology, Inc. (NASDAQ: TCMD) who purchased shares between May 7, 2018 and June 8, 2020. The action, which was filed in the United States District Court for the District of Minnesota, alleges that the Company violated federal securities laws.
In particular, the Tactile Systems lawsuit alleges that (1) while Tactile publicly touted a $4 plus billion or $5 plus billion market opportunity, in truth, the total addressable market for Tactile’s pneumatic compression devices was materially smaller; (2) to induce sales growth and share gains, Tactile and/or its employees were engaged in illicit and illegal sales and marketing activities in violation of applicable federal and state rules and public payer regulations; (3) the foregoing illicit and illegal sales and marketing activities increased the risk of a Medicare audit of Tactile’s claims and criminal and civil liability; (4) Tactile’s revenues were in part the product of unlawful conduct and thus unsustainable; and that as a result of the foregoing, (5) Defendants’ public statements, including Tactile’s year-over-year revenue growth, the purported growth drivers, and the effectiveness of Tactile’s internal controls over financial reporting were materially false and misleading at all relevant times.
Shareholders have until November 30, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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