Osiris Therapeutics Discloses Criminal Investigation, Stock Plunges

By Markets MarketWatch Pulse

Osiris Therapeutics Inc.'s stock plunged 19% in premarket trade Tuesday, after the stem cell research company disclosed in a regulatory filing late Friday that it the subject of a criminal investigation by the U.S. Attorney's office. The company said it believes the investigation is into the same matters as the Securities and Exchange Commission's "non-public investigation" disclosed in March into its accounting practices. Separately, Osiris said the Nasdaq has granted the company an extension to file delinquent financial reports until Sept. 12, 2016. the company hasn't been able to file its reports while it was completing a review of accounting of revenue recognition practices. The stock had plummeted 45% year to date through Friday, while the S&P 500 has gained 2.7%.

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