PhotoMedex Inc (NASDAQ: PHMD) Investor Securities Class Action Lawsuit 11/22/2013

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Company Name(s): 
PhotoMedex
Case Name: 
PhotoMedex Shareholder Class Action Lawsuit 11/22/2013
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: PHMD
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/22/2013
Class Period Begin: 
11/06/2012
Class Period End: 
11/05/2013
Court of Filing: 
U.S. District Court for the Eastern District of Pennsylvania
Deadline To File for Lead: 
01/21/2014
Date Settled: 
03/19/2015
Settlement Amount: 
$1,500,000
Deadline to Participate in Settlement: 
09/10/2015
Settlement Notice: 
Settlement Proof: 
Summary: 

March 19, 2015 - The court preliminarily approved the settlement.

January 13, 2015 - Parties filed a stipulation of settlement.

September 12, 2014 - The court denied the defendants' motion to dismiss.

April 14, 2014 - The lead plaintiff filed an amended complaint.

February 12, 2014 - The lead plaintiff and lead counsel were appointed.

November 22, 2013 - An investor in shares of PhotoMedex Inc (NASDAQ: PHMD) filed a lawsuit in the U.S. District Court for the Eastern District of Pennsylvania over alleged violations of Federal Securities Laws by PhotoMedex Inc in connection with certain allegedly false and misleading statements made between November 7, 2012 and November 14, 2013.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired PhotoMedex Inc (NASDAQ: PHMD) between November 7, 2012 and November 14, 2013, that PhotoMedex Inc violated the Securities Exchange Act of 1934.

More specifically, the plaintiff alleges that the defendants made false and/or misleading statements and/or failed to disclose that the effectiveness of PhotoMedex Inc’s key product, the no!no! device, rested on flimsy, weak studies, that a more credible study raised serious doubts as to the effectiveness of PhotoMedex Inc's key product, and in fact showed that no!no! works no better than shaving, that PhotoMedex Inc materially overstated the prospects for the no!no! device in the Japanese market, and that as a result of the above, PhotoMedex Inc's financial statements, assurances and expectations with regard to the its growth, operations and business prospects were false and misleading at all relevant times.

On November 7, 2012, PhotoMedex Inc reported financial results for the three and nine months ended September 30, 2012.

Shares of grew from $11.18 per share on November 9, 2012, to $14.74 per share on March 8, 2013.

Then on March 13, 2013, PhotoMedex Inc reported that its annual Total Revenue rose from $132.08 million in 2011 to $220.65 million in 2012 and that its Net Loss of $0.69 million in 2011 turned into a Net Income of $2.49 million in 2012.

Shares of PhotoMedex Inc (NASDAQ: PHMD) grew to as high as $16.93 per share in June 2013.

Then on November 6, 2013 PhotoMedex Inc reported its financial results for the three and nine months ended September 30, 2013. PhotoMedex Inc announced that its third quarter Total Revenue declined from $56.68 million in 2012 to $45.89 million in 2013 and that its third quarter Net Income fell from $7.53 million to $0.89 million.

On November 14, 2013, an article was published concerning alleged issues PhotoMedex Inc was facing regarding its main product the “no!no!”.

Shares of PhotoMedex Inc (NASDAQ: PHMD) declined to as low as $11.53 per share.