SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in DermTech, Inc. of Class Action Lawsuit And Upcoming Deadline - DMTK
NEW YORK, Dec. 10, 2023 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against DermTech, Inc. ("DermTech" or the "Company") (NASDAQ: DMTK) and certain of its officers. The class action, filed in the United States District Court for the Southern District of California, and docketed under 23-cv-02221 is on behalf of persons and entities that purchased or otherwise acquired DermTech securities between March 8, 2021 and November 3, 2022, inclusive (the "Class Period"). Plaintiff pursues claims against the Defendants under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased or otherwise acquired DermTech securities during the Class Period, you have until December 15, 2023, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
DermTech is a molecular diagnostic company that develops and markets non-invasive genomics tests to aid the diagnosis and management of skin cancer, inflammatory skin diseases, and aging-related skin conditions. The DermTech Melanoma Test ("DMT"), formerly known as the Pigmented Lesion Assay ("PLA") test, is the Company's commercial test offered to assess pigmented skin lesions for melanoma.
Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) 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; (ii) accordingly, the Company experienced challenges with collections from commercial payors; (iii) as a result, there was a lower average selling price ("ASP") for DMT; (iv) as a result of the foregoing, the Company's revenue growth would be adversely impacted; (v) accordingly, Defendants overstated the strength and/or effectiveness of the Company's strategy for securing broad reimbursement coverage for its assays; and (vi) 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.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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