Harrow, Inc. Fraud Investigation: A Litigation-Driven Opportunity for Shareholder Recovery

The ongoing investigation into Harrow Health, Inc. (NASDAQ: HROW) by the Schall Law Firm has ignited a critical moment for investors holding the stock during the period of alleged misconduct. This article explores the legal landscape of the case, the potential for recovery through securities litigation, and the strategic considerations for shareholders seeking to mitigate losses.

The Allegations: A Pattern of Non-Disclosure

The Schall Law Firm's investigation centers on claims that Harrow misled investors by failing to disclose material information about its operations and regulatory risks. Key allegations include:
1. DOJ Subpoena: A subpoena issued to Eyepoint, a related entity, regarding improper sales and marketing practices for Dexycu, a drug marketed by Harrow.
2. FDA Warnings: A 2022 FDA Warning Letter and Form 483 inspection report detailing unsanitary conditions and drug quality issues, followed by a nationwide recall.
3. Market Impact: When this information was revealed in a February 2023 Bonitas Research report, Harrow's stock plummeted by 7% intraday.

These omissions allegedly created a “material misstatement” that artificially inflated the stock price during the period from February 24, 2022, to March 31, 2025.

Current Status of the Lawsuit

As of June 2025, the case remains in the investigative phase. A class action lawsuit has been filed, but class certification has not yet been granted, meaning shareholders are not represented by the firm until the court approves this step. Investors who purchased HROW shares during the relevant period are urged to act promptly to preserve their rights.

Risk-Reward Dynamics: Can Shareholders Recover?

The potential upside hinges on the lawsuit's success. If certified as a class action, shareholders who held HROW during the misstatement period could seek compensation for losses. However, risks include:
- Certification Uncertainty: Courts may reject certification if the case lacks sufficient evidence of uniform harm to all class members.
- Settlement vs. Trial: Most securities cases settle before trial, but outcomes depend on the defendant's willingness to negotiate.
- Statute of Limitations: While no explicit deadline is stated, investors should act before the typical three-year window for securities fraud claims closes.

Schall Law Firm's Track Record: A Credibility Boost

The firm's history provides hope. Schall has secured nearly $500 million in recoveries since 2017 for investors in similar cases, including high-profile settlements with pharmaceutical companies. Their expertise in securities litigation and shareholder rights gives the case added credibility.

Legal Precedents: A Blueprint for Recovery

Past cases involving pharmaceutical companies facing FDA and DOJ scrutiny offer a roadmap. For instance, in In re: Valeant Pharmaceuticals International, Inc. Securities Litigation, investors recovered $165 million after the company was found to have misled shareholders about regulatory risks. Similarly, Harrow's alleged failure to disclose FDA warnings and DOJ inquiries could align with these precedents.

Actionable Steps for Investors

1. Contact Schall Law Firm: Shareholders who held HROW during February 24, 2022–March 31, 2025, should promptly reach out via:
2. Phone: (310) 301-3335
3. Email: bschall@schallfirm.com
4. Website:
   www.schallfirm.com
5. Document Holdings: Retain records of trades and the stock's value during the relevant period to substantiate claims.
6. Monitor Deadlines: While no specific 2025 deadline is cited, the three-year statute of limitations suggests urgency.

Conclusion: A Calculated Gamble with Potential Payoff

The Harrow case presents a unique opportunity for investors who held the stock during the alleged misstatement period. While there are risks—uncertainty around certification and settlement timing—the potential for recovery is substantial, especially given Schall's track record and parallels to past victories. For those who acted swiftly in similar cases, litigation-driven strategies have proven profitable.

Investors holding HROW should treat this as a strategic litigation play: a low-cost, high-reward move to recover losses while the legal process unfolds. The clock is ticking—act now to ensure your rights are protected.

This analysis is for informational purposes only and not financial advice. Consult a legal or financial advisor before acting.