SAN DIEGO, and MONTGOMERYVILLE, Pa., Dec. 20, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of PhotoMedex, Inc. (NASDAQ: PHMD) has filed a federal securities fraud class action complaint in the U.S. District Court for the Eastern District of Pennsylvania. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between November 7, 2011 and November 14, 2013 (the "Class Period"). PhotoMedex is a skin health company that provides integrated disease management and aesthetic solutions to dermatologists, professional aestheticians, and consumers.
PhotoMedex Accused of Misstating the Effectiveness of the no!no! Device
Shares of PhotoMedex fell $0.50 per share, to close at $14.91 on October 17, 2013, following the release of a report published by TheStreetSweeper.org raising doubts regarding the effectiveness of the company's key product, the no!no! device. PhotoMedex's shares fell an additional 8.84%, or $1.13 per share, to close at $11.65 per share on November 6, 2013, following an announcement by the company that revenues for its third quarter 2013 decreased 19% and that the company had overstated its prospects for the no!no! device in the Japanese market.
According to the complaint, PhotoMedex issued false and misleading statements regarding the company's business prospects and financial performance. Specifically, the company is accused of misleading investors regarding the effectiveness of PhotoMedex's key product, the no!no! device, and failing to disclose the existence of a study that raised doubts regarding its effectiveness. Moreover, the complaint alleges that the company materially overstated the prospective sales of the no!no! device in the Japanese market. As a result, the company's common stock traded at artificially inflated prices throughout the Class Period.
PhotoMedex Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in PhotoMedex and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/photomedex-inc
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP