HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages OrthoPediatrics (KIDS) Traders to Contact Its Attorneys Now, Agency Investigating Doable Securities Fraud

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SAN FRANCISCO, Dec 07, 2020 (GLOBE NEWSWIRE) – Hagens Berman calls on OrthoPediatrics Corp. (N.ASDAQ:: K.IDS) Investors to file their losses now. The law firm investigates possible violations of the Securities Act.

visit:: www.hbsslaw.com/investor-fraud/KIDS
Contact an attorney now:: KIDS@hbsslaw.com
844-916– –0895

OrthoPediatrics Corp. ((CHILDREN) detection::

The investigation focuses on whether OrthoPediatrics artificially increased reported revenue by running an illegal channel stuffing program.

Over the past few quarters, OrthoPediatrics has touted its “steady growth rate of 20% plus,” which in turn has enabled the company to maintain a valuation at 11 times annual sales. OrthoPediatrics confirmed its compliance with GAAP, among other things by only recognizing sales of products that were shipped to its distributors “when products are used in processes”.

On December 2, 2020, the veracity of OrthoPediatrics’ growth story was questioned when Culper Research released a damning report.

Based on interviews with OrthoPediatrics distributors and former executives, Culper concludes: (1) OrthoPediatrics “ran a channel stuffing program that systematically and significantly overrated revenue” (2).[w]We believe the company has abused its ability to post revenue by selling and shipping excess products directly to its distributors, many of whom are company exclusive. “And (3)” Distributors have been encouraged to purchase excess products directly from the Company in exchange for (a) stock-based rewards, (b) the ability to return products, and / or (c) product discounts or increased commission plans. “

This news caused the OrthoPediatrics share to fall.

“We’re focusing on investor losses and whether OrthoPediatrics is involved in revenue recognition fraud,” said Reed Kathrein, the Hagens Berman partner who led the investigation.

If you are an OrthoPediatrics investor, click here to discuss your statutory rights with Hagens Berman.

Whistleblower: Individuals with nonpublic information about orthopediatrics should consider their options to help with the investigation or use the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Further information is available from Reed Kathrein at 844– –916– –0895 or send an email to KIDS@hbsslaw.com.

About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities across the country and eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. More information about the company and its achievements can be found at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.

Contact:
Reed Kathrein, 844-916-0895

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