Case Summary

InMode

NASDAQ: INMD

Case Details

  • Cement Masons' and Plasterers' Local No. 502 Pension Fund v. InMode Ltd. et al.
  • Class Period:June 4, 2021 - October 12, 2023
  • Date Filed:February 14, 2024
  • Jurisdiction:U.S. District Court, Central District of California
  • Docket Number: 2:24-cv-01219
  • Lead Plaintiff Deadline: April 15, 2024
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Overview

A class action lawsuit has been filed against InMode Ltd. (“InMode” or the “Company”) (NASDAQ: INMD) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The InMode lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired publicly traded InMode common stock between June 4, 2021, and October 12, 2023, both dates inclusive (the “Class Period”), and investors have until April 15, 2024, to seek appointment as lead plaintiff of the InMode class action lawsuit.

InMode is a global provider of aesthetic medical devices and technologies.  InMode is an Israeli corporation, and maintains its U.S. headquarters at 17 Hughes, Irvine, California.  Founded in 2008, InMode develops, manufactures, and markets radiofrequency (“RF”) based devices that aid in surgical procedures and treatment.  These RF devices are presented as minimally invasive through an array of products for use in various medical aesthetic categories including dermatology, plastic surgery, and gynecology.  According to InMode, its devices offer “noninvasive” or “minimally invasive” treatments and procedures with “little to no downtime.”

InMode also produces medical equipment, including devices purporting to offer body sculpting and other rejuvenation technologies.  InMode’s target customers include dermatologists, dentists, obstetricians and gynecologists, and medical spas.

The lawsuit alleges that, throughout the Class Period, Defendants made materially false and misleading statements and omissions concerning two topics that are of critical importance to investors, such as: (1) the price at which InMode sells its devices, which reflects the demand for those products; and (2) InMode’s 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 the reporting of injuries.  Specifically, Defendants repeatedly touted the demand for InMode’s devices and told investors that those devices were never sold at a discount.  InMode also assured investors that it had obtained (FDA) clearance for the current treatments for which they offer their products and that no third-party claims have been brought against them to date.  As a result of these misrepresentations, the price of InMode common stock traded at artificially inflated prices throughout the Class Period.

In reality, throughout the Class Period, InMode routinely discounted the prices of its devices and violated FDA regulations by promoting the off-label use of its devices, and by failing to properly report injuries caused by its devices.  The truth began to emerge just before the market closed on February 17, 2023, when an investigative publication revealed that InMode threatened some customers with legal action over complaints made about the Company’s devices and sales tactics.

The customers also stated that InMode offered to replace defective products on the condition of signing confidentiality agreements with non-disparagement clauses.  However, despite these disclosures, InMode continued to misrepresent the pricing of, and demand for, its products.  Then, on October 12, 2023, before the market opened, 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 same day, an investigative publication announced a forthcoming report on InMode, relating to the Company’s statements to investors about pricing flexibility of products and margin consistency.  After the close of trading, the publication released a story revealing that InMode significantly discounted the prices of its devices on a routine basis throughout the Class Period.  As a result of these disclosures, the price of InMode common stock declined precipitously.

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If you purchased or otherwise acquired publicly traded InMode (NASDAQ: INMD) common stock between June 4, 2021 and October 12, 2023, both dates inclusive, 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 investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the InMode lawsuit is April 15, 2024.

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