Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, April 05, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises InMode Ltd. (“InMode” or the “Company”) (NASDAQ: INMD) investors that a lawsuit was filed on behalf of investors that purchased InMode securities between June 4, 2021 and October 12, 2023, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On February 17, 2023, an investigative report disclosed that InMode had issued legal threats against certain customers who had voiced complaints about the Company's devices and sales practices. Allegedly, InMode offered to replace malfunctioning products in exchange for customers signing confidentiality agreements. Subsequently, InMode's stock experienced a decline of $1.21, equivalent to 3.3%, reaching a closing price of $35.81 per share on February 21, 2023, causing financial harm to investors.
Then, on October 12, 2023, InMode revised its annual revenue forecast downwards due to increased interest rates, stricter leasing approval criteria, and delays in loan processing. Concurrently, another investigative report unveiled that InMode routinely applied significant discounts to its product prices. Consequently, InMode's stock plummeted by $7.24, a staggering 25.9%, closing at $20.75 per share on October 13, 2023, inflicting further financial losses on investors.
The class action complaint contends that throughout the Class Period, the Defendants disseminated materially false and/or misleading statements while omitting significant adverse facts about the Company's business, operations, and future prospects. Notably, the Defendants allegedly failed to disclose: (1) the pervasive discounting strategy applied to nearly all InMode devices; (2) the pivotal role of discounts in driving demand for the Company's products; (3) violations of FDA regulations through off-label marketing and promotion of products for unapproved indications; (4) breaches of FDA regulations by neglecting timely reporting of device-related injuries; and (5) thus, the Defendants' positive representations regarding the Company's business, operations, and prospects were materially deceptive and/or lacked a reasonable foundation throughout the relevant period.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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