Minnetonka-based medical device manufacturer Uroplasty, Inc., recently announced that it was notified by Nasdaq that it was not meeting Nasdaq’s listing’s requirements, because it failed to file its annual report on time.
 
Uroplasty—which manufactures and markets products for treating bladder dysfunction and pelvic disorders—recently put its Chief Financial Officer, Mahedi Jiwani, on administrative leave as it reviews issues related to employee payments and internal control over financial reporting.
 
As a result of what Uroplasty described as “issues in internal control related to the recognition of orders and the payment of sales commissions at the end of fiscal quarters,” the company said last month that it would delay the filing of its financial report for the fiscal year that ended March 31. The company said at the time that a review of the issue was ongoing, and it was “unable at this time to fully assess the potential impact on its financial statements.”
 
Uroplasty said it is required to submit a plan within 60 days to regain compliance with Nasdaq’s requirements in order to continue being listed on the exchange. The company said, however, that it expects to have filed the appropriate form and be in full compliance prior to the deadline.
 
Multiple law firms are reaching out to Uroplasty shareholders who may have suffered losses as a result of potential fiduciary misconduct at the company. The law firms claim to be investigating a possible breach of duties by officers and directors of the company.
 
When the company disclosed its internal review, shares of Uroplasty’s stock slid about 10.5 percent, closing at $2.22 per share on June 14. Shares dropped from $2.19 to $2.15 when the company announced that it received a letter from Nasdaq regarding noncompliance and were trading down about 2 percent at $2.12 Monday afternoon.

Uroplasty is among Minnesota’s 15 largest publicly traded medical device manufacturers based on revenue, which totaled $20.6 million during the fiscal year that ended in March 2012. Prior to announcing that it would delay the official filing of its latest annual report, Uroplasty said in a press release that revenue for its most recently completed fiscal year totaled $22.4 million.