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Omnicell, Inc. (NASDAQ: OMCL) Investor Securities Class Action Lawsuit 07/18/2019

  • If you purchased shares of Omnicell, Inc. (NASDAQ: OMCL), you may have certain options. Please contact the Shareholders Foundation, Inc.

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Lawsuit Overview

Case Dismissed
Company
Omnicell, Inc.
Security
NASDAQ: OMCL

Case Name
Omnicell Shareholder Class Action Lawsuit 07/18/2019
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Northern District of California

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Class Period End
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Summary

December 5, 2019 - The case was voluntarily dismissed.

July 18, 2019 - An investor in shares of Omnicell, Inc. (NASDAQ: OMCL) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Omnicell, Inc. in connection with certain allegedly false and misleading statements made between October 25, 2018 and July 11, 2019.

Mountain View, CA based Omnicell, Inc. provides medication and supply dispensing automation, central pharmacy automation, analytics software, and medication adherence solutions for the healthcare industry worldwide. Omnicell, Inc. reported that its annual Total Revenue rose from $712.71 million in 2017 to $787.3 million in 2018 and that its Net Income increased from $30.51 million in 2017 to $37.72 million in 2018. Shares of Omnicell, Inc. (NASDAQ: OMCL) grew from $25.21 per share in 2016 to as high as $92.59 per share on June 17, 2019.

On July 10, 2019, a report was published alleging Omnicell, Inc obfuscated its financials over the past two years by using a variety of accounting gimmicks. After analyzing Omnicell's accounts receivable (AR), inventory, and capitalized expense diagnostics, the report concluded that Omnicell, Inc has prematurely recognized over $38 million in sales revenue, failed to write-off over $23 million in obsolete inventory, and has misclassified and accelerated the capitalization of over $38 million in expenses. Shares of Omnicell, Inc. (NASDAQ: OMCL) declined to $67.30 per share on July 12, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Omnicell, Inc. (NASDAQ: OMCL) common shares between October 25, 2018 and July 11, 2019, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between October 25, 2018 and July 11, 2019, the Defendants failed to disclose to investors that the Company recognized revenue for certain transactions before fulfilling its performance obligations, that the Company engaged in improper accounting practices to meet revenue targets, that the Company experienced weaker demand for new product lines than it had previously projected, that, as a result, the Company would be required to write-off certain inventory, that the Company misclassified certain expenses as capitalized expenditures, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations