GlobeNewswire Inc | Oct 28, 2020 12:30PM EDT

October 28, 2020

LOS ANGELES, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (GPM) reminds investors of the upcomingNovember 30, 2020deadline to file a lead plaintiff motion in the class action filed onbehalf of investorswho purchasedor otherwise acquired Tactile Systems Technology, Inc. (Tactile or the Company) (NASDAQ: TCMD) securities between May 7, 2018 and June 8, 2020, inclusive (the Class Period).

If you suffered a loss on your Tactile investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/tactile-systems-technology-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On March 20, 2019, an amended Qui Tam complaint against Tactile was unsealed, alleging that the Company illegally paid hospital staff to induce physicians to prescribe its medical devices and had submitted fraudulent claims to Medicare and Veterans Administration (VA).

On this news, Tactiles share price fell $4.53 per share, or over 7%, over two consecutive trading sessions to close at $55.57 per share on March 22, 2019.

Then, on February 21, 2020, the court denied Tactiles motion to dismiss the Qui Tam complaint in its entirety. Analysts warned that [o]nly two options remaineither this qui tam gets settled out of court, or it goes to discovery.

On this news, Tactiles share price fell $6.65 per share, or over 10%, to close at $56.09 per share on February 24, 2020.

On June 8, 2020, OSS Research issued a report on alleging that the true source of Tactiles growth is a kick-back scheme that has resulted in rampant overprescribing. The OSS Research report also alleged that Medicare has recently launched an industry-wide audit in which Tactile has been disproportionately targeted. 70% of Tactiles claims audited so far have been retroactively denied.

On this news, Tactiles share price fell $6.05 per share, or over 11%, to close at $45.67 per share on June 9, 2020, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) while Tactile publicly touted a $4 plus billion or $5 plus billion market opportunity, in fact, the total addressable market for Tactiles medical devices was materially smaller; (2) to induce sales growth and share gains, the Company and/or its employees were engaged in illicit and illegal sales and marketing activities in violation of applicable federal and state rules and public payer regulations; (3) the foregoing illicit and illegal sales and marketing activities increased the risk of a Medicare audit of the Tactiles claims and criminal and civil liability; (4) Tactiles profits were in part the product of unlawful conduct and thus unsustainable; and that as a result of the foregoing, (5) the Companys public statements, including its year-over-year revenue growth and the purported growth drivers, were materially false and misleading at all relevant times; and (6) that, as a result of the foregoing, the Defendants statements about the Companys business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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If you purchased or otherwise acquired Tactile securities during the Class Period, you may move the Court no later than November 30, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish tolearn moreabout this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

ContactsGlancy Prongay & Murray LLP, Los AngelesCharles H. Linehan, 310-201-9150 or 888-773-92241925 Century Park East, Suite 2100Los Angeles, CA 90067 www.glancylaw.com shareholders@glancylaw.com