SAN DIEGO and SEATTLE, Oct. 14, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Atossa Genetics, Inc. (NASDAQ: ATOS) has filed a federal securities fraud class action complaint in the U.S. District Court, Western District of Washington. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between November 8, 2012 and October 4, 2013 (the "Class Period").
Learn more about our investigation on our Shareholder Rights Blog: http://www.robbinsarroyo.com/shareholders-rights-blog/atossa-genetics-inc/
Atossa Accused of Failing to Disclose Material Adverse Facts to Investors Regarding its MASCT System and MASCT System Collection Test (collectively, the "MASCT System")Shares of Atossa fell $2.47 per share, or more than 46%, on October 4, 2013, after the company announced "a voluntary recall to remove the ForeCYTE Breast Health Test and the Mammary Aspiration Specimen Cytology Test (MASCT) device from the market." This steep decline follows an initial 5.6% decline per share on February 25, 2013, following the announcement that the company received a warning letter from the U.S. Food and Drug Administration ("FDA") regarding the MASCT System. According to the complaint, Atossa made false and/or misleading statements, as well as failed to disclose the following material adverse facts about its business and financial condition. Atossa was:
- required, but failed, to submit an additional 510(k) notification to obtain necessary FDA clearance as it made material changes to the Nipple Aspirate Fluid specimen collection process;
- improperly marketing its devices by using certain promotional claims to market the ForeCYTE Breast Health Test and the MASCT device; and
- was in violation of FDA Good Manufacturing Practices regulations.