Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of Tactile Systems Technology, Inc. (“Tactile” or the “Company”) (NASDAQ: TCMD) to determine whether Tactile engaged in securities fraud or other unlawful business practices.
Tactile investors who purchased, or otherwise acquired, the Company’s securities between May 7, 2018 and June 8, 2020, both dates inclusive (the “Class Period”), and suffered losses greater than $100,000 are encouraged to complete Kehoe Law Firm’s Securities Class Action Questionnaire or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], to discuss the securities investigation or potential legal claims.
According to a class action lawsuit filed on September 29, 2020 in United States District Court, District of Minnesota, during the Class Period, the Tactile Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies, and financial results.
According to the class action complaint, the Defendants made false and/or misleading statements and/or failed to disclose 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 (“PCDs”) 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 as a result of the foregoing, (5) the 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.