SAN DIEGO, Feb. 16, 2024 /PRNewswire/ — DiCello Levitt LLP announces that purchasers or acquirers of InMode Ltd. (“InMode” or the “Company”) (NASDAQ: INMD) common stock between June 4, 2021 and October 12, 2023, inclusive (the “Class Period”) have until April 15, 2024 to seek appointment as lead plaintiff of the InMode class action lawsuit. The lawsuit charges InMode and certain of its senior executive officers with violations of the Securities Exchange Act of 1934.
If you purchased shares of InMode common stock between June 4, 2021 and October 12, 2023, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/inmode/.
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected].
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Allegations
The InMode lawsuit alleges that throughout the Class Period, InMode and its executives made false and misleading statements to investors concerning two important topics:
- InMode falsely highlighted the strong demand for its products, telling investors that the Company’s products were never sold at a discount. In truth, however, InMode employed deceptive and predatory practices to sell its products and secretly applied significant discounts to almost every device it sold, expecting sales representatives to discount devices anywhere between 16% and 40% off the list price.
- InMode misled investors concerning its 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 reporting injuries. Unbeknownst to investors, InMode marketed several of its products for use outside of their FDA approval and never notified the FDA of known injuries caused by its devices until early 2023.
The truth began to be revealed when, on February 17, 2023, an investigative publication revealed that InMode had threatened some customers with legal action over complaints made about the Company’s devices and sales tactics. On this news, the price of InMode common stock declined $1.21 per share to a closing price of $35.81 per share on February 21, 2023.
Then, on October 12, 2023, 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 day, an investigative publication previewed a forthcoming report on InMode, relating to the Company’s statements and practices about pricing flexibility and margin consistency. After the close of trading, the publication’s story revealed that InMode significantly discounted the prices of its devices on a routine basis throughout the Class Period. On this news, the price of InMode common stock fell $7.24 per share, or nearly 26%, from a closing price of $27.99 per share on October 11, 2023, to a closing price of $20.75 per share on October 13, 2023.
About DiCello Levitt
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SOURCE DiCello Levitt LLP
