GRABAR LAW OFFICE INVESTIGATES POTENTIAL SHAREHOLDER DERIVATIVE ACTION ON BEHALF OF CURRENT SHAREHOLDERS OF TACTILE SYSTEMS TECHNOLOGY, INC. (NASDAQ: TCMD) AFTER CLASS ACTION PARTIALLY SURVIVES MOTION TO DISMISS
A class action lawsuit that was filed in 2020 against Tactile Systems Technology, Inc. and certain of its executives, has partially survived a motion to dismiss. Tactile manufactures and sells pneumatic compression devices (“PCD”) for at home treatment of lymphedema and chronic venous insufficiency (“CVI”). One of Tactile’s devices—the Flexitouch—generates 90% of Tactile’s revenues.
Unlike a class action, brought on behalf of damaged investors, a shareholder derivative action is an action brought by a shareholder of a public company on behalf of and for the benefit of the company itself against the directors and/or officers of that company. In a derivative action, shareholders “step into the shoes” of the directors and officers of a company and bring litigation that the board would be unwilling to pursue on its own.
Tactile shareholders who have held shares of the Company’s stock continuously since at least May 7, 2018 can seek corporate reforms, the return of funds back to company coffers and potentially a court approved incentive award if appropriate.
If you would like to learn more about this matter at no cost to you, please fill out the form provided or contact us at jgrabar@grabarlaw.com or call 267-507-6085. $TCMD
Additional Information About the Potential Shareholder Action
The lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) while Tactile publicly touted a $4 billion-plus or $5 billion-plus market opportunity, in truth, the total addressable market for Tactile’s medical devices 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 that as a result of the foregoing, (5) Defendants’ public statements, including its year-over-year revenue growth and the purported growth drivers, were materially false and misleading at all relevant times.
Standard Derivative Form Retainer
Standard Form Derivative Retainer Letter - No Cost