Ra Medical Securities Litigation

The Court directed that the Notice be mailed to you because you or someone in your family or an investment account for which you serve as a custodian may have purchased or otherwise acquired Ra Medical common stock during the Settlement Class Period. The Court also directed that the Notice be posted on the Documents tab of this website or mailed to you upon request to the Claims Administrator. The Court has directed us to disseminate notice because, as a potential Settlement Class Member, you have a right to know about your options before the Court rules on the proposed Settlement. Additionally, you have the right to understand how this class action lawsuit may generally affect your legal rights. If the Court approves the Settlement, and the Plan of Allocation (or some other plan of allocation), the claims administrator selected by Plaintiffs and approved by the Court will make payments pursuant to the Settlement after any objections and appeals are resolved.

A copy of the Notice can be found here.

This litigation stems from Lead Plaintiffs’ allegations that Defendants made material misstatements and/or omitted material facts about Ra Medical’s operations, including product defects with DABRA catheters, product recall, off-label marketing of DABRA, and improper payments to physicians.

The class action complaint in this Action was filed in the United States District Court for the Southern District of California on June 7, 2019. By Order dated September 5, 2019, the Court appointed Ervin Derr and Peter Shoemaker to serve as Lead Plaintiffs in the Action, and approved their selection of Glancy Prongay & Murray LLP as Lead Counsel.

On January 13, 2020, Lead Plaintiffs filed and served their First Amended Complaint (the “FAC”). It asserted claims against Ra Medical, Irwin, and Jackson under Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against Irwin and Jackson under Section 20(a) of the Exchange Act, against Defendants under Section 11 of the Securities Act of 1933 (the “Securities Act”), and against the Individual Defendants under Section 15 of the Securities Act. Among other things, the FAC alleged that Defendants made materially false and misleading statements and/or failed to disclose material facts about the manufacturing problems that caused DABRA catheters to fail to calibrate, the recall of DABRA product, and the resulting financial impact. It also alleged that Defendants failed to disclose that the Company engaged in off-label marketing by characterizing DABRA as an atherectomy device and that Ra Medical made improper payments to physicians. The FAC further alleged that the prices of Ra Medical’s publicly-traded securities were artificially inflated as a result of Defendants’ allegedly false and misleading statements, and declined when the truth was revealed.

On March 13, 2020, Defendants moved to dismiss the FAC. On April 27, 2020, Lead Plaintiffs opposed Defendants’ motions to dismiss, and on May 27, 2020, Defendants filed their reply papers.

On March 24, 2021, the Court issued a Order granting in part and denying in part Defendants’ motions to dismiss the FAC.

On April 19, 2021, Lead Plaintiffs filed and served their Second Amended Complaint (the “Complaint”), alleging substantially similar claims as those in the FAC, but omitted allegations regarding Ra Medical’s sales personnel and training, and added allegations regarding Lead Plaintiffs’ standing to pursue the Section 11 claim, the Company’s off-label marketing of DABRA, and Ra Medical’s settlement with the Department of Justice.

On June 10, 2021, Defendants moved to dismiss the Complaint. On July 26, 2021, Lead Plaintiffs opposed Defendants’ motion to dismiss, and on August 25, 2021, Defendants filed their reply papers.

On September 28, 2021, Lead Counsel and Defendants’ Counsel participated in a full-day mediation session before Jed D. Melnick, Esq. of JAMS, a nationally recognized mediator of complex disputes. In advance of that session, the Parties exchanged, and provided to Mr. Melnick, detailed mediation statements, which addressed the issues of both liability and damages. The session culminated in Mr. Melnick recommending that the Parties resolve the Action for a cash payment of $10,000,000 by or on behalf of Defendants. Both Parties accepted Mr. Melnick’s recommendation.

The terms of the Settlement are set forth in the Stipulation and Agreement of Settlement.

If you are a member of the Settlement Class, you are subject to the Settlement, unless you timely request to be excluded from the Settlement Class. The Settlement Class consists of:

all persons and entities that purchased or otherwise acquired the common stock of Ra Medical: (a) pursuant and/or traceable to Ra Medical’s IPO; and/or (b) between September 27, 2018 and November 27, 2019, inclusive.

Excluded from the Settlement Class are: (a) persons and entities who or which suffered no compensable losses; and (b)(i) Defendants and Underwriters; (ii) any person who served as a partner, control person, executive officer and/or director of Ra Medical or Underwriters during the Settlement Class Period, and their Immediate Family Members; (iii) present and former parents, subsidiaries, assigns, successors, affiliates, and predecessors of Ra Medical and Underwriters; (iv) any entity in which Defendants or Underwriters have or had a controlling interest; (v) any trust of which any Individual Defendant is the settler or which is for the benefit of any Individual Defendant and/or their Immediate Family Members; (vi) Defendants’ liability insurance carriers; and (vii) the legal representatives, heirs, successors, and assigns of any person or entity excluded under provisions (i) through (vi) hereof. Also excluded from the Settlement Class are any persons and entities who or which submit a request for exclusion from the Settlement Class that is accepted by the Court. For the avoidance of doubt, (a) any Investment Vehicle shall not be excluded from the Settlement Class; and (b) “affiliates” are persons or entities that directly, or indirectly through one or more intermediaries, control, are controlled by or are under common control with one of the Defendants.

PLEASE NOTE: RECEIPT OF THE NOTICE DOES NOT MEAN THAT YOU ARE A SETTLEMENT CLASS MEMBER OR THAT YOU WILL BE ENTITLED TO RECEIVE PROCEEDS FROM THE SETTLEMENT.

If you are a Settlement Class Member and you wish to be eligible to participate in the distribution of proceeds from the Settlement, you are required to submit the Claim Form that is available on the Documents tab of this website or which can be mailed to you upon request to the Claims Administrator, and the required supporting documentation as set forth therein, online or postmarked no later than July 9, 2022.

Lead Plaintiffs and Lead Counsel believe that the claims asserted against Defendants have merit. They recognize, however, the expense and length of continued proceedings necessary to pursue their claims against the remaining Defendants through trial and appeals, as well as the very substantial risks they would face in establishing liability and damages. Lead Plaintiffs and Lead Counsel also recognize that Defendants have numerous defenses that could preclude a recovery.

Lead Plaintiffs and Lead Counsel believe that the proposed Settlement is fair, reasonable and adequate, and in the best interests of the Settlement Class. Lead Plaintiffs and Lead Counsel believe that the Settlement provides a substantial benefit to the Settlement Class, namely $10,000,000 in cash (less the various deductions described in the Notice), as compared to the risk that the claims in the Action would produce a smaller recovery, or indeed no recovery, after summary judgment, trial and appeals, possibly years in the future.

Defendants have denied the claims asserted against them in the Action and deny having engaged in any wrongdoing or violation of law of any kind whatsoever. Defendants have agreed to the Settlement solely to eliminate the burden and expense of continued litigation. Accordingly, the Settlement may not be construed as an admission of any wrongdoing by Defendants.

If there were no Settlement and Plaintiffs failed to establish any essential legal or factual element of their claims against Defendants, neither Plaintiffs nor the other members of the Settlement Class would recover anything from Defendants. Also, if Defendants were successful in proving any of their defenses, either at summary judgment, at trial or on appeal, the Settlement Class could recover substantially less than the amount provided in the Settlement, or nothing at all.

If you are a Settlement Class Member and you do not exclude yourself from the Settlement Class, you will be bound by any orders issued by the Court. If the Settlement is approved, the Court will enter a judgment (the “Judgment”). The Judgment will dismiss with prejudice the claims against Defendants and will provide that, upon the Effective Date of the Settlement, Plaintiffs and each of the other Settlement Class Members, on behalf of themselves, and their respective heirs, executors, administrators, predecessors, successors, and assigns, in their capacities as such, shall be deemed to have, and by operation of law and of the Judgment shall have, fully, finally and forever, compromised, settled, released, resolved, relinquished, waived and discharged each and every Released Plaintiffs’ Claim against Released Defendants’ Parties and shall forever be barred and enjoined from prosecuting any or all of the Released Plaintiffs’ Claims against any of the Released Defendants’ Parties. The definitions of certain capitalized words that are not otherwise defined may be found in the Stipulation and Agreement of Settlement.

To be eligible for a payment from the proceeds of the Settlement, you must be a member of the Settlement Class and you must timely complete and return the Claim Form with adequate supporting documentation online or postmarked no later than July 9, 2022. A Claim Form is available here, or you may request that a Claim Form be mailed to you by calling the Claims Administrator toll free at 1-855-675-3149. Please retain all records of your ownership of and transactions in Ra Medical common stock, as they may be needed to document your Claim. If you request exclusion from the Settlement Class or do not submit a timely and valid Claim Form, you will not be eligible to share in the Net Settlement Fund.

Each Settlement Class Member will be bound by all determinations and judgments in this lawsuit, whether favorable or unfavorable, unless such person or entity mails or delivers a written Request for Exclusion from the Settlement Class, addressed to Ra Medical Systems, Inc. Securities Litigation, EXCLUSIONS, c/o Epiq, P.O. Box 5189, Portland, OR 97208-5189. The exclusion request must be received no later than May 23, 2022. You will not be able to exclude yourself from the Settlement Class after that date.

Exclusion Requests Must

1. state the name, address, and telephone number of the person or entity requesting exclusion, and in the case of entities, the name and telephone number of the appropriate contact person;
2. state that such person or entity “requests exclusion from the Settlement Class in Derr et al. v. Ra Medical Systems, Inc., et al., Case No. 3:19-cv-01079”;
3. identify and state the number of shares of Ra Medical common stock that the person or entity requesting exclusion purchased/acquired and/or sold during the Settlement Class Period (i.e., between September 27, 2018 and November 27, 2019, inclusive) as well as the dates and prices of each such purchase/acquisition and sale; and
4. be signed by the person or entity requesting exclusion or an authorized representative.

A Request for Exclusion shall not be valid and effective unless it provides all the information called for above and is received within the time stated above, or is otherwise accepted by the Court.

At this time, it is not possible to make any determination as to how much any individual Settlement Class Member may receive from the Settlement.

Pursuant to the Settlement, Defendants have agreed to pay or cause to be paid $10,000,000 in cash. The Settlement Amount will be deposited into an escrow account. The Settlement Amount plus any interest earned thereon is referred to as the “Settlement Fund.” If the Settlement is approved by the Court and the Effective Date occurs, the “Net Settlement Fund” (that is, the Settlement Fund less (a) all federal, state and/or local taxes on any income earned by the Settlement Fund and the reasonable costs incurred in connection with determining the amount of and paying taxes owed by the Settlement Fund (including reasonable expenses of tax attorneys and accountants); (b) the costs and expenses incurred in connection with providing notice to Settlement Class Members and administering the Settlement on behalf of Settlement Class Members; and (c) any attorneys’ fees and Litigation Expenses awarded by the Court) will be distributed to Settlement Class Members who submit valid Claim Forms, in accordance with the proposed Plan of Allocation or such other plan of allocation as the Court may approve.

A Recognized Loss will be calculated for each share of Ra Medical common stock purchased or otherwise acquired during the Settlement Class Period. The calculation of Recognized Loss will depend upon several factors, including when the Ra Medical common stock was purchased or otherwise acquired during the Settlement Class Period, and in what amounts, and whether those securities were sold, and if sold, when they were sold, and for what amounts. The Recognized Loss is not intended to estimate the amount a Settlement Class Member might have been able to recover after a trial, nor to estimate the amount that will be paid to Authorized Claimants pursuant to the Settlement. The Recognized Loss is the basis upon which the Net Settlement Fund will be proportionately allocated to the Authorized Claimants. The Claims Administrator will use its best efforts to administer and distribute the Net Settlement Fund to the extent that it is equitably and economically feasible.

The Court will hold a hearing on August 15, 2022 at 11:30 a.m., to decide whether to, among other things, approve the Settlement and the proposed Plan of Allocation. All Claim Forms must be submitted to the Claims Administrator, postmarked (if mailed) or received (if submitted online) on or before July 9, 2022. If the Court approves the Settlement, there may still be appeals which would delay payment, perhaps for more than a year. It also takes time for all the Claim Forms to be processed. Please be patient.

Lead Counsel has not received any payment for its services in pursuing claims against the Defendants on behalf of the Settlement Class, nor have Lead Counsel been reimbursed for its out-of-pocket expenses. Before final approval of the Settlement, Lead Counsel will apply to the Court for an award of attorneys’ fees in an amount not to exceed 33⅓% of the Settlement Fund. At the same time, Lead Counsel also intends to apply for reimbursement of Litigation Expenses in an amount not to exceed $85,000, which may include an application for reimbursement of the reasonable costs and expenses incurred by Lead Plaintiffs directly related to their representation of the Settlement Class. The Court will determine the amount of any award of attorneys’ fees or reimbursement of Litigation Expenses. Such sums as may be approved by the Court will be paid from the Settlement Fund. Settlement Class Members are not personally liable for any such fees or expenses.

Settlement Class Members do not need to attend the Settlement Hearing. The Court will consider any submission made in accordance with the provisions below even if a Settlement Class Member does not attend the hearing. You can participate in the Settlement without attending the Settlement Hearing.

The Settlement Hearing will be held on August 15, 2022, at 11:30 a.m., before the Honorable Larry Alan Burns at the United States District Court for the Southern District of California, United States Courthouse, Courtroom 14A, 333 West Broadway, San Diego, CA 92101. The Court reserves the right to approve the Settlement, the Plan of Allocation, Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of Litigation Expenses and/or any other matter related to the Settlement at or after the Settlement Hearing without further notice to the members of the Settlement Class.

Any Settlement Class Member who or which does not request exclusion may object to the Settlement, the proposed Plan of Allocation or Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of Litigation Expenses. Objections must be in writing. You must file any written objection, together with copies of all other papers and briefs supporting the objection, with the Clerk’s Office at the United States District Court for the Southern District of California at the address set forth below on or before May 23, 2022. You must also serve the papers on Lead Counsel and on Defendants’ Counsel at the addresses set forth below so that the papers are received on or before May 23, 2022.

Any objection: (a) must state the name, address and telephone number of the person or entity objecting and must be signed by the objector; (b) must contain a statement of the Settlement Class Member’s objection or objections, and the specific reasons for each objection, including any legal and evidentiary support the Settlement Class Member wishes to bring to the Court’s attention; and (c) must include documents sufficient to prove membership in the Settlement Class, including the number of shares of Ra Medical common stock that the objecting Settlement Class Member purchased/acquired and/or sold during the Settlement Class Period (i.e., between September 27, 2018 and November 27, 2019, inclusive), as well as the dates and prices of each such purchase/acquisition and sale. You may not object to the Settlement, the Plan of Allocation or Lead Counsel’s motion for attorneys’ fees and reimbursement of Litigation Expenses if you exclude yourself from the Settlement Class or if you are not a member of the Settlement Class.

You may file a written objection without having to appear at the Settlement Hearing. You may not, however, appear at the Settlement Hearing to present your objection unless you first file and serve a written objection in accordance with the procedures described above, unless the Court orders otherwise.

If you wish to be heard orally at the hearing in opposition to the approval of the Settlement, the Plan of Allocation or Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of Litigation Expenses, and if you timely file and serve a written objection as described above, you must also file a notice of appearance with the Clerk’s Office and serve it on Lead Counsel and Defendants’ Counsel at the addresses set forth above so that it is received on or before May 23, 2022. Persons who intend to object and desire to present evidence at the Settlement Hearing must include in their written objection or notice of appearance the identity of any witnesses they may call to testify and exhibits they intend to introduce into evidence at the hearing. Such persons may be heard orally at the discretion of the Court.

You are not required to hire an attorney to represent you in making written objections or in appearing at the Settlement Hearing. However, if you decide to hire an attorney, it will be at your own expense, and that attorney must file a notice of appearance with the Court and serve it on Lead Counsel and Defendants’ Counsel at the addresses set forth above so that the notice is received on or before May 23, 2022.

If you purchased or otherwise acquired any of the Ra Medical common stock between September 27, 2018 and November 27, 2019, inclusive, for the beneficial interest of persons or organizations other than yourself, you must either:

1. within seven (7) calendar days of receipt of the Notice, request from the Claims Administrator sufficient copies of the Notice and Claim Form (the “Notice Packet”) to forward to all such beneficial owners and within seven (7) calendar days of receipt of those Notice Packets forward them to all such beneficial owners; or
2. within seven (7) calendar days of receipt of the Notice Packet, provide a list of the names and addresses of all such beneficial owners to Ra Medical Systems, Inc. Securities Litigation, c/o Epiq, P.O. Box 5189, Portland, OR 97208-5189.

If you choose the second option, the Claims Administrator will send a copy of the Notice Packet to the beneficial owners. Upon full compliance with the Court Order, such nominees may seek reimbursement of their reasonable expenses actually incurred up to a maximum of $0.50 per Notice Packet mailed; $0.05 per Notice Packet transmitted by email; or $0.10 per name, mailing address, and email address (to the extent available) provided to the Claims Administrator—by providing the Claims Administrator with proper documentation supporting the expenses for which reimbursement is sought. Any dispute concerning the reasonableness of reimbursement costs shall be resolved by the Court. Copies of the Notice and the Claim Form may be downloaded here, or by calling the Claims Administrator toll-free at 855-675-3149.

The Notice contains only a summary of the terms of the proposed Settlement. For more detailed information about the matters involved in this Action, you are referred to the papers on file in the Action, including the Stipulation, which may be inspected during regular office hours at the Office of the Clerk, United States District Court for the Southern District of California, United States Courthouse, 333 West Broadway, San Diego, CA 92101. Additionally, copies of the Stipulation and any related orders entered by the Court will be posted here.

All inquiries concerning the Notice and the Claim Form should be directed to the Claims Administrator or Lead Counsel at:

Ra Medical Systems, Inc. Securities Litigation
c/o Epiq
P.O. Box 5189
Portland, OR 97208-5189
info@RaMedicalSecuritiesLitigation.com

and/or

Casey E. Sadler, Esq.
GLANCY PRONGAY & MURRAY LLP
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
888-773-9224
settlements@glancylaw.com

Please do not call or write the court, the office of the clerk of the court, defendants or their counsel regarding the Notice.

The CUSIP for the Class Period, September 27, 2018 and November 27, 2019, is 74933X203. The ticker symbol is RMED.