NEW YORK, July 19, 2019 /PRNewswire/ -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased shares of Omnicell Inc. ("Omnicell" or the "Company") (OMCL) between October 25, 2018, and July 11, 2019, inclusive (the "Class Period"). The lawsuit, which was filed in the United States District Court for the Northern District of California, seeks to recover damages under the Securities Exchange Act of 1934.
If you purchased Omnicell securities, and/or would like to discuss your legal rights and options please visit Omnicell OMCL Shareholder Class Action or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
According to the lawsuit, throughout the Class Period, Defendants failed to disclose: (1) that the Company recognized revenue for certain transactions before fulfilling its performance obligations; (2) that the Company engaged in improper accounting practices to meet revenue targets; (3) that the Company experienced weaker demand for new product lines than it had previously projected; (4) that, as a result, the Company would be required to write-off certain inventory; (5) that the Company misclassified certain expenses as capitalized expenditures; and (6) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On July 11, 2019, GlassHouse Research LLC published a report entitled "Ominous Omnicell, Inc. (OMCL) Delays the Inevitable." The report concluded that Omnicell prematurely recognized $38.3 million in sales that should have been recognized long-term consistent with the Company's performance obligations. Among other things, the report alleged that Omnicell's "new product lines [were] previously pushed onto hospitals, GPOs, and other customers to the point where they are stuffed with products and hesitant to procure any more inventory, especially when dealing with implementation issues." The report further stated that, due to these accounting practices, the Company would be required to write off $23 million of obsolete inventory. Due to inconsistent increases in capitalized expenses and prepaid commissions, the report alleged that $38.0 million in capitalized expenditures should have been expensed.
On this news, the Company's stock price fell $11.41 per share, or nearly 14%, to close at $75.11 per share on July 11, 2019, on unusually heavy trading volume.
If you purchased Omnicell securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/omnicellinc-omcl-shareholder-lawsuit-class-action-stock-fraud-154/ or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
If you wish to serve as lead plaintiff you must move the court no later than September 17, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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