If you suffered losses exceeding $25,000 investing in DermTech stock or options between March 8, 2021 and November 3, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/DMTK.
There is no cost or obligation to you.
NEW YORK, Dec. 15, 2023 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against DermTech, Inc. (“DermTech” or the “Company”) (NASDAQ: DMTK) and reminds investors of the December 15, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) increased adoption momentum for DMT was likely to result in payor tactics to impede that momentum and/or more limited commercial payor coverage for DMT; (2) accordingly, the Company experienced challenges with collections from commercial payors; (3) as a result, there was a lower average selling price (“ASP”) for DMT; (4) as a result of the foregoing, the Company’s revenue growth would be adversely impacted; (5) accordingly, Defendants overstated the strength and/or effectiveness of the Company’s strategy for securing broad reimbursement coverage for its assays; and (6) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 8, 2022, during after-market hours, DermTech announced its second quarter 2022 financial results and revealed that the Company expected “a lower [ASP] for [its] DMT” due to “Medicare billing code edits . . . as well as less favorable collection patterns from commercial payors.”
On this news, DermTech’s stock price fell $2.87 per share, or 34%, to close at $5.56 per share on August 9, 2022, on unusually heavy trading volume.
Then, on November 3, 2022, during after-market hours, DermTech announced its third quarter 2022 financial results, reporting that billable sample volume “sequential growth was flat due to headwinds caused by limited commercial payer coverage.” Company management attributed the disappointing growth to “commercial payer collection challenges [that have] affect[ed] estimating ASP”, while further disclosing that “growth in utilization with certain customers is tempered because of typical payor tactics to impede [DMT’s] adoption momentum.” As a result, DermTech expected “at least $13 million in assay revenue for the full-year 2022,” which is “below [its] previous guidance range.”
On this news, DermTech’s stock price fell $1.34 per share, or 44.7%, to close at $1.66 per share on November 4, 2022, on unusually heavy trading volume.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding DermTech’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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