SAN FRANCISCO, Sept. 17, 2020 /PRNewswire/ -- Hagens Berman urges Nano-X Imaging Ltd. (NASDAQ: NNOX)investors to contact the firm now. Hagens Berman also encourages potential whistleblowers to consult with its attorneys. A securities fraud class action has been filed and certain investors may have valuable claims.
The lawsuit centers on whether NNOX misled investors about its technology and customers.
According to the complaint, prior to and since going public in Aug. 2020, NNOX has touted its development of a digital X-ray source, the "Nanox System," enabling cost reduction of imaging systems by orders of magnitude. The company has also emphasized its lucrative commercial agreements with key customers.
Investors began to learn the truth, according to the complaint, on Sept. 15, 2020, when Citron Research published a report accusing Nano-X of conducting "the most blatant stock promotion we have seen in years." Citron challenged Nano-X's claimed new innovative technology, stating "we have not even seen proof of the product and have only seen a mockup drawing of what this machine is supposed to look like." Citron also alleged that Nano-X's commercial "agreements may sound nice on the surface, but these appear to be no more than fake customers." Specifically, Citron examines several of Nano-X's purported largest customers, charges that they do not have the operations to satisfy their multi-million dollar commercial agreements, and concludes that NNOX's claims that these are real customers are "ludicrous."
Following this report, the price of Nano-X shares crashed sharply lower.
"We're focused on investors' losses and proving Nano-X misrepresented the status of its X-ray source and commercial agreements," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Nano-X should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.