Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Surgalign Holdings, Inc. (f/k/a RTI Surgical Holdings, Inc.) (NasdaqGS: SRGA).
On March 16, 2020, the Company disclosed that it would be unable to timely file its Form 10-K for FY 2019, citing an internal Audit Committee investigation of its revenue recognition practices that was the result of an SEC investigation related to the periods 2014 through 2016. Previously, the Company had assured investors that its results after adopting new amended accounting standards implemented by the Financial Accounting Standards Board in 2016 were “substantially consistent with the Company's current revenue recognition policies” and that it did not expect a material impact on its financial position when recognizing revenue from its current contracts with the new standard.
Then, on April 9, 2020, the Company disclosed that the internal audit investigation remained ongoing and that investors should no longer rely on prior financial reports for the fiscal years ended December 31, 2014, 2015, 2016, 2017 and 2018 and its unaudited financial statements for the quarterly periods for 2016-2018 and the nine months ended September 30, 2019.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, the court presiding over the case denied the Company’s motion to dismiss, allowing the case to move forward.
KSF’s investigation is focusing on whether Surgalign’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Surgalign shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org), or visit https://www.ksfcounsel.com/cases/nasdaqgs-srga/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking to recover investment losses due to corporate fraud and malfeasance by publicly traded companies. KSF has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner