Faruqi & Faruqi, LLP, a leading national securities law firm, is currently conducting an investigation into possible claims against InMode Ltd. (“InMode” or the “Company”) (NASDAQ: INMD). The firm is reminding investors that they have until April 15, 2024, to seek the role of lead plaintiff in a federal securities class action brought against the Company.
Investors who have suffered losses exceeding $100,000 in InMode stock or options between June 4, 2021, and October 12, 2023, are encouraged to contact Faruqi & Faruqi partner Josh Wilson directly to discuss their legal rights. The contact numbers are 877-247-4292 or 212-983-9330 (Ext. 1310). Additional information can be found on Faruqi & Faruqi’s website.
The complaint alleges that InMode and its executives violated federal securities laws by making false and misleading statements and failing to disclose important information. These include the pricing and demand for InMode’s devices, compliance with U.S. Food and Drug Administration (FDA) regulations, and reporting requirements for injuries. The Company had repeatedly claimed high demand for its devices and denied selling them at a discount.
However, in February 2023, an investigative publication revealed that InMode had threatened customers with legal action over complaints and required them to sign confidentiality agreements. The truth further emerged on October 12, 2023, when InMode lowered its revenue guidance and an investigative report was announced regarding the Company’s statements on pricing and margin consistency. InMode had significantly discounted its devices’ prices throughout the Class Period. As a result, the price of InMode common stock plummeted.
Investors who believe they may have relevant information regarding InMode’s conduct are encouraged to contact Faruqi & Faruqi, LLP, including whistleblowers, former employees, shareholders, and others.
InMode Ltd. operates in the medical device industry, specifically focusing on developing and manufacturing minimally invasive treatment technologies. The company’s devices aim to improve aesthetic outcomes for patients and provide innovative solutions for the medical community.
The market for minimally invasive medical devices has been experiencing significant growth in recent years. This is driven by factors such as an increasing demand for non-surgical cosmetic procedures, advancements in technology, and the rising awareness of the benefits of minimally invasive treatments.
According to market forecasts, the global market for aesthetic devices is expected to reach a value of $17.7 billion by 2025, with a compound annual growth rate of 8.6% during the forecast period. The key drivers of this growth include the growing aging population, increasing disposable income, and the desire for youthful appearances.
However, the industry also faces several challenges and issues. One of the main concerns is the regulatory environment, particularly compliance with FDA regulations. Medical device companies must adhere to strict guidelines to ensure the safety and efficacy of their products. Failure to comply with these regulations can lead to significant legal and financial consequences, as observed in the case of InMode Ltd.
Another issue within the industry is the risk of misleading statements and potential violations of securities laws. The allegations made against InMode highlight the importance of transparency and accurate reporting by companies in the medical device sector. Investors rely on accurate information to make informed decisions, and any false or misleading statements can have severe consequences for shareholder value.
It is crucial for investors to stay informed about such developments and seek legal counsel if they believe they have suffered losses as a result of a company’s actions. Faruqi & Faruqi, LLP, is currently conducting an investigation into the claims against InMode and is encouraging investors to come forward and discuss their legal rights.
For further information about the law firm and the investigation, investors can visit Faruqi & Faruqi’s website.