InMode Ltd.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired InMode Ltd. (“InMode” or the “Company”) (NASDAQ:INMD) securities during the period of June 6, 2021, to October 12, 2023, inclusive (“the Class Period”). Investors have until November 27, 2024, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On February 17, 2023, an investigative publication revealed that InMode customers were threatened with legal action after filing complaints regarding the Company’s devices and sales tactics. On this news, the price of InMode shares declined by $1.21 per share from $37.02 per share on February 17, 2023, to close at $35.81 on February 21, 2023.
Then, on October 12, 2023, before the market opened, InMode lowered its full-year revenue guidance, which the Company blamed on higher interest rates, tighter leasing approval standards, and bottlenecks in loan processing. Later that same day, an investigative publication announced a forthcoming report on InMode, relating to the Company’s statements to investors about pricing flexibility of products and margin consistency. After the close of trading, the publication released a story revealing that InMode significantly discounted the prices of its devices on a routine basis throughout the Class Period. On this news, the price of InMode shares declined by $7.24 per share, or nearly 26%, from $27.99 per share on October 11, 2023, to close at $20.75 on October 13, 2023.
The complaint alleges that defendants, throughout the Class Period, made materially false and misleading statements and omission concerning two topics that are of critical importance to investors: (1) the price at which InMode sells it devices, which reflects the demand for those products; and (2) InMode’s compliance with U.S. Food and Drug Administration (“FDA”) regulations, including the FDA’s prohibition on off-label marketing of devices and the FDA’s requirements for the reporting of injuries. Specifically, Defendants repeatedly touted the demand for InMode’s devices and told investors that those devices were never sold at a discount. InMode also assured investors that it had “obtained FDA clearance for the current treatments for which we offer our products” and that “no third-party claims have been brought against us to date.”
On February 17, 2023, an investigative publication revealed that InMode customers were threatened with legal action after filing complaints regarding the Company’s devices and sales tactics. On this news, the price of InMode shares declined by $1.21 per share from $37.02 per share on February 17, 2023, to close at $35.81 on February 21, 2023.
Then, on October 12, 2023, before the market opened, InMode lowered its full-year revenue guidance, which the Company blamed on higher interest rates, tighter leasing approval standards, and bottlenecks in loan processing. Later that same day, an investigative publication announced a forthcoming report on InMode, relating to the Company’s statements to investors about pricing flexibility of products and margin consistency. After the close of trading, the publication released a story revealing that InMode significantly discounted the prices of its devices on a routine basis throughout the Class Period. On this news, the price of InMode shares declined by $7.24 per share, or nearly 26%, from $27.99 per share on October 11, 2023, to close at $20.75 on October 13, 2023.
The complaint alleges that defendants, throughout the Class Period, made materially false and misleading statements and omission concerning two topics that are of critical importance to investors: (1) the price at which InMode sells it devices, which reflects the demand for those products; and (2) InMode’s compliance with U.S. Food and Drug Administration (“FDA”) regulations, including the FDA’s prohibition on off-label marketing of devices and the FDA’s requirements for the reporting of injuries. Specifically, Defendants repeatedly touted the demand for InMode’s devices and told investors that those devices were never sold at a discount. InMode also assured investors that it had “obtained FDA clearance for the current treatments for which we offer our products” and that “no third-party claims have been brought against us to date.”