Everything You Need to Know about the DermTech Class Action Lawsuit

If you suffered losses in DermTech stock, contact DermTech stock loss lawyer Timothy L. Miles about a DermTech class action lawsuit

The DermTech class action lawsuit has been filed against DermTech, Inc. (NASDAQ: DMTK) and certain executives, alleging violations of the Securities Exchange Act of 1934. This comprehensive guide will provide you with all the essential information about the lawsuit, including the allegations, the lead plaintiff process, the benefits of serving as a lead plaintiff, and more. If you have suffered losses in DermTech stock, it is crucial to understand your rights and options. Read on to learn everything you need to know about the DermTech class action lawsuit.

Introduction

The DermTech class action lawsuit seeks to represent purchasers or acquirers of DermTech, Inc. securities between May 3, 2022, and November 3, 2022. Filed as Bagheri v. DermTech, Inc., No. 23-cv-01885 (S.D. Cal.), the lawsuit alleges violations of the Securities Exchange Act of 1934 by DermTech and certain executives.

If you suffered losses in DermTech stock during the class period and wish to serve as the lead plaintiff in the class action lawsuit, it is crucial to understand the process and your rights. Let us delve into the details of the allegations and the lead plaintiff process.

Allegations in the DermTech Class Action Lawsuit

​DermTech is a molecular diagnostic company specializing in non-invasive genomics tests for skin cancer, inflammatory skin diseases, and aging-related skin conditions. One of its commercial tests is the DermTech Melanoma Test (DMT), which assesses pigmented skin lesions for melanoma.

The DermTech class action lawsuit alleges that throughout the class period, DermTech failed to disclose several key pieces of information. Firstly, it is alleged that DermTech faced challenges with collections from commercial payors, resulting in a lower average selling price for the DMT test. Consequently, the lawsuit claims that DermTech's revenue growth would be adversely impacted.

On August 8, 2022, DermTech announced its second-quarter financial results and revealed that it expected a lower average selling price for the DMT test due to Medicare billing code edits and less favorable collection patterns from commercial payors. As a result of this news, DermTech's stock price fell approximately 34%.

Additionally, on November 3, 2022, DermTech announced its third-quarter financial results, reporting that billable sample volume sequential growth was flat due to limited commercial payer coverage. DermTech attributed the disappointing growth to commercial payer collection challenges affecting the estimation of the average selling price. As a result, DermTech's stock price fell by nearly 45%.

The Lead Plaintiff Process

If you suffered losses in DermTech stock during the class period and wish to serve as the lead plaintiff in the class action lawsuit, it is essential to understand the lead plaintiff process. The lead plaintiff is appointed by the court to represent the class members and protect their interests.

To be considered for the lead plaintiff position, you must file a lead plaintiff motion with the court by the specified deadline, which is December 15, 2023, in the case of the DermTech class action lawsuit. This motion should include relevant information, such as the date and number of shares purchased, the amount of losses suffered, and any other supporting documentation.

The court will evaluate the lead plaintiff motions and select the most adequate candidate to serve as the lead plaintiff. It is important to note that being appointed as the lead plaintiff does not require any financial risk, as lead counsel advances all costs and expenses incurred in the prosecution of the case. Lead plaintiffs may also be eligible for reimbursement of reasonable expenses directly related to representing the class.

Can Non-U.S. Investors Serve as Lead Plaintiffs?

Yes, courts in the U.S. have consistently recognized that non-U.S. investors, many of whom have substantial holdings, are adequate lead plaintiffs and have the same right to move for lead plaintiffs as U.S. investors.  Thus, if a non-U.S. investor suffered losses in DermTech stock, they may move the Court to be appointed lead plaintiff in the DermTech class action lawsuit. ​

Benefits of Serving as a Lead Plaintiff

Serving as a Lead Plaintiff in the DermTech class action lawsuit has several advantages and important benefits including:

• A Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
• Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
• There is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred it the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
• Lead Plaintiff has the benefit involved and active in all negotiations relating to any settlement.
• Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation. 

Thus, there are numerous benefits and other advantages to serving as lead plaintiff in a class action against DermTech​ if you suffered losses in DermTech​ stock. ​

Lead Plaintiff in Another Case

If you have served as a lead plaintiff in another class action lawsuit, you may still be eligible to serve as the lead plaintiff in the DermTech class action lawsuit. Unless you have been a lead plaintiff in more than five securities class actions during any three-year period, you are permitted to seek appointment as the lead plaintiff in the DermTech class action lawsuit.

It is crucial to consider your previous experience as a lead plaintiff and consult with a DermTech stock loss lawyer to determine your eligibility and understand the legal implications. If you meet the requirements and suffered losses in DermTech stock, you may move forward with seeking appointment as the lead plaintiff.​

Class Period in the DermTech Lawsuit

In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives.  The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading.  The class period ends when the truth is revealed to the investing public through a corrective disclosure.  
 
In order to be a part of the class in the DermTech class action lawsuit, you must have suffered losses in DermTech stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the class action against DermTech​.​

Determining Class Membership

To determine your eligibility as a class member in the DermTech class action lawsuit, you must have purchased DermTech securities during the class period and suffered losses. If you meet these criteria, you are most likely a member of the class and may participate in the lawsuit.

It is important to gather documentation and evidence of your purchases during the class period, such as receipts, brokerage statements, or any other records that demonstrate your transactions. This information will be crucial in establishing your class membership and potential recovery.

To ensure accuracy and thoroughness in determining your class membership, it is highly recommended to consult with a DermTech stock loss lawyer. They will guide you through the process and help you gather the necessary documentation to support your claim.

Potential Recovery in the DermTech Class Action Lawsuit

​In a securities fraud class action lawsuit, the plaintiff's damages are typically calculated as out-of-pocket losses. These losses represent the difference between the price at which the stock was sold and the price at which the stock would have been sold in the absence of any artificial inflation caused by the defendant's alleged misrepresentations or omissions.

If you suffered losses in DermTech stock during the class period, you may be eligible to recover your losses through the DermTech class action lawsuit. The potential recovery amount will depend on various factors, including the number of shares you purchased, the extent of the stock price decline, and other individual circumstances.
​
To assess the potential recovery in your specific case, it is crucial to consult with a DermTech stock loss lawyer. They will evaluate your losses and guide you through the process of seeking compensation in the DermTech class action lawsuit.

Cost of Hiring a DermTech Stock Loss Lawyer

If you suffered losses in DermTech stock and wish to participate in the class action against DermTech, it does not cost anything to hire a DermTech stock loss lawyer. Securities fraud cases are typically handled on a contingency fee basis, meaning that the lawyers' fees and court costs are only paid if there is a recovery in the case.

Lead counsel in the class action lawsuit will advance all costs and expenses incurred in the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class. Therefore, as a class member, you do not bear any financial risk in hiring a DermTech stock loss lawyer.

By working with a DermTech stock loss lawyer, you can access legal representation without any upfront costs. They will fight for your rights, maximize your potential recovery, and ensure that you receive fair compensation for your losses.

Contact a DermTech Stock Loss Lawyer Today

If you suffered losses in DermTech stock during the class period and are considering participating in the class action against DermTech, it is crucial to seek the guidance of a DermTech stock loss lawyer. They will provide you with a free case evaluation and explain your rights and options. 

​​​One name that immediately pops up is nationally known and widely respected Nashville lawyer Timothy L.  Miles, who has valuable experience and has received numerous awards, mostly due to his high ethical standards, and hard work ethic, including most recently being named a Top 25 Class action lawyer by the National Trial Lawyers Association, and has maintained an AV rating from Martindale-Hubble since 2014, was named a 2023 Top Rated Litigator and 2023 Top Rated Lawyer by Martindale-Hubble and ALM, and was recently named a 2023 Elite Lawyer of the South by Martindale-Hubble for the fifth year in a row, and was a recipient of Avvo Client's Choice Award in 2021, in 2022 was featured in the Top 100 Lawyers Magazine and received the Lifetime Achievement Award by Premier Lawyers of America (2019-2021). ​

​This is most likely the only call you need to make in the DermTech class action lawsuit.

​Contact DermTech stock loss lawyer Timothy L. Miles today by calling 855/846-6529 or via email at [email protected] or by submitting a contact form. As a skilled advocate for investors, Timothy L. Miles practices securities fraud cases and will fight to recover your losses in the DermTech class action lawsuit.

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DermTech stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,  shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.