Kaskela Law LLC is investigating Tactile Systems Technology, Inc. (“Tactile” or the “Company”) (NASDAQ: TCMD) on behalf of the Company’s long-term stockholders.
Tactile is a medical technology company that develops and sells medical devices for the treatment of chronic diseases at home. At all relevant times, Tactile’s flagship product was Flexitouch, a pneumatic compression device (“PCD”) designed for the at-home treatment of lymphedema and advanced chronic venous insufficiency (“CVI”).
Recently a securities fraud complaint was filed against Tactile in federal court on behalf of investors who purchased shares of the Company’s stock between May 7, 2018 and June 8, 2020. According to the complaint, during that time period Tactile and certain senior executive officers “concealed from investors that to boost the Company’s revenues, Tactile was engaging in unlawful kickback schemes and submitting false claims to federal healthcare programs” like the Veterans Administration (“VA”) and Center for Medicare & Medicaid Services (“CMS”).
The complaint further alleges that, on June 8, 2020, Seeking Alpha published a report by OSS Research entitled Strong Sell on Tactile Systems: Bloated Stock Needs Compression Therapy that, among other things, revealed information concerning an alleged “kickback scheme and the false claims that Tactile had made to third-party payers, and called into question for the first time the Company’s reported addressable market for Flexitouch.” Following this news, shares of the Company’s stock price fell $6.95 per share, or nearly 13% in value, to close at $47.26 per share.
The investigation seeks to determine whether the members of Tactile’s board of directors violated the securities laws and/or breached their fiduciary duties to the Company and its stockholders in connection with the above alleged misconduct.
Current Tactile stockholders who purchased or acquired shares of the Company’s stock prior to June 8, 2020 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about this investigation and their legal rights and options with respect to this matter.