TCMD Shareholder Investigation: The Law Firm of Barbuto & Johansson, P.A. Investigates Tactile Systems Technology, Inc. and Encourages Shareholders with Substantial Losses to Contact the Firm
WELLINGTON, Fla., June 15, 2020 (GLOBE NEWSWIRE) -- Barbuto & Johansson, P.A. (“BARJO”) and Of Counsel, Neil Rothstein, Esq. (with over 30 years of Securities Class Action experience, including cases against ENRON and HALLIBURTON) advise that it has commenced an investigation into Tactile Systems Technology, Inc. (NasdaqGS: TCMD) (“Tactile” or the “Company”) on behalf of investors as to whether Tactile and certain of its executives have engaged in fraud, negligence or other unlawful business practices in violation of the federal securities laws.
On June 8, 2020, the Office of Strategic Shorts (“OSS Research”) published a report suggesting a strong sell and revealing a kickback scheme as the true source of Tactile’s growth. The report stated that Medicare has recently launched an industry-wide audit in which Tactile has been disproportionately targeted, where “71% of Tactile’s claims audited so far have been denied for failure to establish medical necessity.”
The report also noted that Tactile has seen multiple key executive departures in recent years, with various insiders selling more than 50% of their shareholdings in 2019 since a lawsuit was filed against the Company in the U.S. District Court for the Southern District of Texas suggesting that Tactile is “employing borderline to potentially illegal marketing schemes to induce sales growth and share gains.”
After news of OSS Research’s report, Tactile’s stock price fell approximately 10% to close at $47.26 per share on June 8, 2020. The stock price has continued to decline, falling below $40.00 per share last week.
The Firm encourages shareholders who have suffered substantial losses in Tactile to contact attorney Anthony Barbuto, Esq. at (888) 715-2520 or via email anthony@barjolaw.com; or Neil Rothstein, Esq. via email at neil@barjolaw.com, free of charge, to discuss this case and shareholder rights.
Barbuto & Johansson, P.A.
Anthony Barbuto, Esq.
1-888-715-2520
12773 Forest Hill Blvd., 101
Wellington, FL 33414
http://www.barjolaw.com
