NASDAQ : DMTK
- Bagheri v. DermTech, Inc. et al.
- Class Period:May 03, 2022 - November 03, 2022
- Date Filed:October 16, 2023
- Jurisdiction:U.S. District Court, Southern District of California
- Docket Number: 3:23-cv-01885
- Lead Plaintiff Deadline: December 15, 2023
Seek Plaintiff 11
A class action lawsuit, captioned Bagheri v. DermTech, Inc. et al., No. 3:23cv01885 (S.D. Cal.), has been filed against DermTech, Inc. (“DermTech” or the “Company”) (NASDAQ: DMTK) and certain of its top executive officers alleging that they violated the federal securities laws. The lawsuit seeks to represent purchasers or acquirers of DermTech securities between May 3, 2022, and November 3, 2022, inclusive (the “Class Period”).
DermTech is a molecular diagnostic company that develops and markets non-invasive genomics test to aid the diagnosis and management of skin cancer, inflammatory skin diseases, and aging-related skin conditions. The DermTech Melanoma Test (“DMT”) is a commercial test offered to assess pigmented skin lesions for melanoma.
The DermTech lawsuit alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) DermTech experienced challenges with collections from commercial payors; (2) as a result, there was a lower average selling price for DermTech’s DMT; and (3) consequently, DermTech’s revenue growth would be adversely impacted.
The DermTech lawsuit further alleges that on August 8, 2022, DermTech announced its second quarter 2022 financial results and revealed that DermTech expected “a lower average selling price (ASP) for [its] DMT,” due to “Medicare billing code edits . . . as well as less favorable collection patterns from commercial payors.” On this news, DermTech’s stock price fell approximately 34%.
According to the DermTech lawsuit, thereafter on November 3, 2022, DermTech announced its third quarter 2022 financial results, reporting that billable sample volume “sequential growth was flat due to headwinds caused by limited commercial payer coverage” and that DermTech attributed the disappointing growth to “commercial payer collection challenges [have] affect[ed] estimating ASP [average selling price]” and that, as a result, DermTech expected “at least $13 million in assay revenue for the full-year 2022,” which is “below [its] previous guidance range.” On this news, DermTech’s stock price fell by nearly 45%.
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If you purchased DermTech securities during the Class Period and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page.You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at firstname.lastname@example.org.
The deadline to apply to the Court to serve as a lead plaintiff in the DermTech lawsuit is December 15, 2023.