On November 6, 2013, PhotoMedex, Inc. (“PhotoMedex” or the “Company”) (Nasdaq: PHMD) issued a press release reporting PhotoMedex’s third quarter 2013 financial and operating results and confirmed allegations that the Company had overstated its prospects for the Company’s key product, the no!no! device, in the Japanese market. Specifically, PhotoMedex stated that there were “no consumer sales to the Company’s distributor in Japan.” Following this news, PhotoMedex shares fell $1.13 per share, or 8.84%, from a close of $12.78 per share on November 5, 2013 to a close of $11.65 per share on November 6, 2013.
A complaint has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons who purchased or otherwise acquired shares of PhotoMedex common stock between November 7, 2012 and November 14, 2013 (the “Class Period”). The action has been brought against PhotoMedex and certain Company officers alleging that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose that (i) the effectiveness of the Company’s key product, the no!no! device, rested on flimsy, weak studies; (ii) a more credible study raised serious doubts as to the touted effectiveness of the Company’s key product, and in fact showed that no!no! works no better than shaving; (iii) the Company materially overstated the prospects for the no!no! device in the Japanese market; and (iv) as a result, the Company’s financial statements, assurances and expectations with regard to the Company’s growth, operations and business prospects were false and misleading at all relevant times.
If you are an investor who purchased PhotoMedex stock you may have a legal claim against the Company and could serve as the lead plaintiff in a class action lawsuit. The deadline to move for appointment as a lead plaintiff is January 27, 2014. If you are interested in being the lead plaintiff, or would like to speak with an attorney about your legal rights, contact the attorneys at Wites Law Firm by email atinfo@witeslaw.com or toll-free at 1 (866) 277-8631.
