The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against InMode Ltd. (INMD)

The Law Offices of Frank R. Cruz reminds investors of the upcoming April 15, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired InMode Ltd. (“InMode” or the “Company”) (NASDAQ: INMD) common stock between June 4, 2021 and October 12, 2023, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On February 17, 2023, an investigative publication reported that InMode had threatened some customers with legal action over complaints made regarding the Company’s devices and sales tactics, with customers stating that the Company offered to replace defective products if they signed confidentiality agreements. On this news, InMode’s stock price fell $1.21, or 3.3%, to close at $35.81 per share on February 21, 2023, thereby injuring investors.

Then, on October 12, 2023, InMode lowered its full-year revenue guidance due to higher interest rates, tighter leasing approval standards, and bottlenecks in loan processing. Additionally, that same day, another investigative publication revealed that InMode had routinely and significantly discounted the prices of its devices. On this news, InMode’s stock price fell $7.24, or 25.9%, to close at $20.75 per share on October 13, 2023, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company heavily discounts almost every device it sells; (2) demand for the Company’s products was driven by InMode’s willingness to discount its products; (3) the Company violated FDA regulations by engaging in off-label marketing and promoting products for treatment of indications for which they lack FDA approval; (4) the Company violated FDA regulations by failing to timely report injuries caused by its devices; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased or otherwise acquired InMode common stock during the Class Period, you may move the Court no later than April 15, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240411164118/en/