Kaskela Law LLC is investigating Orthofix Medical Inc. (NASDAQ: OFIX) on behalf of the company’s long-term shareholders.
Recently a securities fraud complaint was filed against Orthofix on behalf of certain investors who purchased shares of the company’s stock between October 11, 2022 and September 12, 2023 (the “Class Period”). According to the complaint, during the Class Period, Orthofix and certain of the company’s senior executive officers made a series of materially false and/or misleading statements to investors about the company’s business, operations, and prospects.
On October 11, 2022, Orthofix announced that it had agreed to merge with SeaSpine Holdings Corporation (“SeaSpine”) to combine in an all-stock merger of equals. Among other things, the complaint alleges that, beginning on the day that the merger agreement was announced, the defendants’ statements to investors “were knowingly or recklessly false when made and/or failed to disclose adverse facts relating to the extent of discrimination and misconduct that had been occurring at SeaSpine for years,” and the role that certain key SeaSpine executives had played “in fostering SeaSpine’s hostile and misogynistic workplace–information which would have been readily available to Orthofix during the due diligence process.”
The complaint further details how, after the former SeaSpine executives joined and “took over Orthofix, they carried with them their problematic management style, continuing to devalue and discriminate against women, even in light of the problems that had been raised during [a] discrimination class action lawsuit.” Eventually, on September 12, 2023, Orthofix publicly disclosed that it had terminated the former SeaSpine executives “for cause” following an internal investigation that uncovered that they had “violated multiple code of conduct requirements.” Following this development, shares of Orthofix’s stock fell $5.62 per share, or over 30% in value, to close on September 12, 2023 at $13.01 per share, on unusually heavy trading volume.
The investigation seeks to determine whether the members of Orthofix’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Orthofix shareholders are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information about this investigation and their legal rights and options.
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
([email protected])
Adrienne Bell, Esq.
([email protected])
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 – 0750