InMode Ltd. (NASDAQ: INMD), a global provider of aesthetic medical devices and technologies, is currently facing a class action lawsuit filed by purchasers of its common stock. The lawsuit, captioned Cement Masons’ and Plasterers’ Local No. 502 Pension Fund v. InMode Ltd., alleges violations of the Securities Exchange Act of 1934 by InMode and certain top executives. Investors who suffered substantial losses during the Class Period, which spans from June 4, 2021, to October 12, 2023, have until April 15, 2024, to seek appointment as lead plaintiff in the lawsuit.
The allegations in the class action lawsuit claim that InMode and its executives made false and/or misleading statements and failed to disclose certain information. It is alleged that InMode heavily discounted almost every device it sold, and the demand for its products was driven by these discounts. Additionally, the lawsuit alleges that InMode engaged in off-label marketing, promoting products for indications without FDA approval, and failed to timely report injuries caused by its devices, violating FDA regulations.
The lawsuit gained momentum after an investigative publication reported on February 17, 2023, that InMode customers faced legal threats after filing complaints about the company’s devices and sales tactics. This news resulted in a decline in the price of InMode common stock. Subsequently, on October 12, 2023, InMode lowered its full-year revenue guidance, citing reasons such as higher interest rates, tighter leasing approval standards, and loan processing bottlenecks. On the same day, another investigative publication revealed that InMode routinely offered significant discounts on its devices throughout the Class Period. This news caused a nearly 26% drop in the price of InMode common stock over two trading sessions.
Investors who purchased InMode common stock during the Class Period have the opportunity to seek appointment as lead plaintiff in the class action lawsuit. The Private Securities Litigation Reform Act of 1995 allows the lead plaintiff to represent all other class members and select a law firm to litigate the case. It is important to note that an investor’s ability to share in any potential future recovery is not dependent on serving as the lead plaintiff.
Robbins Geller Rudman & Dowd LLP, a leading complex class action firm representing plaintiffs in securities fraud cases, is handling the lawsuit. The firm has a strong track record, having recovered over $1.75 billion for investors in 2022 alone. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms globally and has obtained some of the largest securities class action recoveries in history.
While the class action lawsuit raises concerns about InMode’s alleged violations, it is important to note that the company remains a prominent player in the global aesthetic medical devices and technologies market. InMode’s innovative products continue to provide solutions for various aesthetic procedures, contributing to the overall well-being and satisfaction of patients worldwide.
Investors who believe they may be eligible to serve as lead plaintiff in the InMode class action lawsuit are encouraged to contact Robbins Geller Rudman & Dowd LLP for further information and guidance.
Please note that this article is for informational purposes only and does not constitute legal advice. Past results do not guarantee future outcomes, and services may be performed by attorneys in any of Robbins Geller Rudman & Dowd LLP’s offices.
