DERMTECH, INC. – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Dermtech, Inc. (“Dermtech” or “the Company”) (NASDAQ: DMTK) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired Dermtech securities May 3, 2022 through November 3, 2022 (the “Class Period”). Investors who acquired Dermtech securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is December 15, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Dermtech securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST DERMTECH, INC.
On August 8, 2022, after the market closed, DermTech announced its second quarter 2022 financial results and revealed that the Company expected “a lower average selling price (ASP) for [its] DMT,” due to “Medicare billing code edits . . . as well as less favorable collection patterns from commercial payors.” On this news, the Company’s stock price fell $2.87, or 34%, to close at $5.56 per share on August 9, 2022, on unusually heavy trading volume. Then, on November 3, 2022, after the market closed, 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.” The Company attributed the disappointing growth to “commercial payer collection challenges [have] affect[ed] estimating ASP [average selling price].” 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, the Company’s stock price fell $1.34, or 44.7%, to close at $1.66 per share on November 4, 2022, on unusually heavy trading volume. The complaint filed in this class action alleges that 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: (1) that the Company experienced challenges with collections from commercial payors; (2) that, as a result, there was a lower average selling price for DermTech’s DMT; (3) that, as a result of the foregoing, the Company’s revenue growth would be adversely impacted; and (4) that, 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.
ABOUT DERMTECH, INC.
- DermTech, Inc. is a biotechnology company that specializes in the development and commercialization of non-invasive gene expression tests for the early detection of skin cancer and other skin-related conditions. The company is known for its innovative technologies that help dermatologists and healthcare professionals diagnose skin diseases more accurately and efficiently.
- One of DermTech’s primary innovations is the Pigmented Lesion Assay (PLA), which is designed to assist in the detection of melanoma, the most deadly form of skin cancer. This test involves taking a small adhesive patch sample from a suspicious skin lesion, which is then analyzed for gene expression patterns associated with melanoma. This non-invasive approach can provide early, accurate, and cost-effective information to help healthcare providers decide if a biopsy is necessary.
- DermTech’s technology can also be used to assist in the diagnosis of other skin conditions, including actinic keratosis, basal cell carcinoma, and squamous cell carcinoma. Their tests offer a more patient-friendly and less invasive alternative to traditional skin biopsies, making the diagnostic process more comfortable for patients while providing valuable information for healthcare providers.
JOIN THIS CASE AGAINST DERMTECH, INC.
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Dermtech during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is December 15, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against Dermtech are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
