HARTFORD, Conn., March 18, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Massachusetts on behalf of all persons who purchased the common stock of NeuroMetrix, Inc. ("NeuroMetrix" or the "Company") (Nasdaq:NURO) between October 27, 2005 and March 6, 2007, inclusive (the "Class Period").
The Complaint charges that NeuroMetrix and certain of its officers and directors violated federal securities laws. Specifically, defendants issued materially false and misleading statements regarding the Company's NC-stat device, which is a strap-on or hand-held device that allows physicians, usually general practitioners, to test for problems like carpal tunnel syndrome and back pain without the need for an exam from a specialist. According to the Complaint, throughout the Class Period, unbeknownst to shareholders, NeuroMetrix's sales of its NC-stat device were artificially inflated as: (i) the efficacy of the Company's NC-stat device was highly questionable and concerns were being raised by practitioners; (ii) health insurers were increasingly denying reimbursement for procedures using the Company's NC-stat device or raising significant payment issues; (iii) the Company instructed doctors to bill under the same insurance billing codes as the competing needle procedure rather than applying for its own insurance billing code in order to enable practitioners to get reimbursement; and (iv) the Company was improperly giving doctors kickbacks in the form of free sensors for referring other doctors to the NC-stat system.
If you are a member of the class, you may, no later than May 16, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.