According to the Complaint, Tactile Systems Technology, Inc. is a medical technology company that develops and provides medical devices for the treatment of chronic diseases at home. Tactile’s principal area of therapeutic focus is vascular disease, with a goal of advancing the standard of care in treating lymphedema and chronic venous insufficiency.

The Complaint alleges that Defendants violated the securities laws by misrepresenting and concealing that: (1) while Tactile publicly touted a $4 billion-plus or $5 billion-plus market opportunity, in truth, the total addressable market for Tactile’s medical devices was materially smaller; (2) to induce sales growth and share gains, Tactile 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 Tactile’s claims and criminal and civil liability; (4) Tactile’s revenues were in part the product of unlawful conduct and thus unsustainable; and that as a result of the foregoing, (5) Defendants’ public statements, including its year-over-year revenue growth and the purported growth drivers, were materially false and misleading at all relevant times.

On February 1, 2021, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on April 19. Defendants filed a Motion to Dismiss the amended Complaint on June 18. On March 31, 2022, the Court issued an Order granting in part and denying in part the Motion to Dismiss.

On February 28, 2023, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on May 4. On August 25, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and on August 28, the Court entered Final Judgment.