SAN FRANCISCO, Sept. 15, 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.
The investigation centers on whether NNOX misled investors about its technology and customers.
Prior to and since going public in Aug. 2020, NNOX has touted its development of a digital X-ray source enabling cost reduction of imaging systems by orders of magnitude. The company has also emphasized its lucrative commercial agreements with key customers.
But on Sept. 15, 2020, 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 determining whether Nano-X may have 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].
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