Understanding the InMode Class Action Lawsuit: A Closer Look

If you suffered losses in InMode stock, contact InMode stock loss lawyer Timothy L. Miles about an InMode lawsuit

INTRODUCTION THE INMODE CLASS ACTION LAWSUIT

Contact InMode stock loss lawyer Timothy L. Miles today about the InMode class action lawsuit

The InMode class action lawsuit, formally known as Cement Masons' and Plasterers' Local No. 502 Pension Fund v. InMode Ltd., centers around serious allegations of securities fraud that affected investors. This litigation has been brought on behalf of those who invested in the common stock of InMode Ltd. (NASDAQ: INMD) from June 4, 2021, through October 12, 2023. The case focuses on whether InMode and its executives' misled investors or failed to disclose crucial information during this period, significantly impacting those who had placed their trust in the company's financial statements and business outlook.

Designed to represent the interests of the aggrieved investors, the class action against InMode seeks accountability for allegedmisrepresentations and omissions. By including investors who purchased InMode stock between these dates, the lawsuit addresses the potential financial losses incurred due to the alleged securities fraud. For those affected, understanding the process of becoming a lead plaintiff and the implications of the allegations against InMode is crucial. The lawsuit not only highlights significant concerns surrounding InMode's corporate governance and disclosure practices but also underscores the importance of transparency in financial communications to investors.

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Background of InMode Ltd

InMode, established in 2008 and headquartered in Yokneam, Israel, has positioned itself as a pioneering force in the medical technology arena, particularly in the field of minimally invasive aesthetic procedures. The company's journey from its initial days as Invasix Ltd to becoming a publicly traded entity on the NASDAQ in 2013, underscores a trajectory marked by innovation, strategic acquisitions, and sustained growth.
Key Milestones:

• 2013: InMode's Initial Public Offering (IPO) on NASDAQ, raising approximately $40 million.
• 2015: Acquisition of RF Medical, a move that expanded InMode's product portfolio and global footprint.
• 2016-2019: Introduction of groundbreaking platforms like Evolve, Morpheus8, and EmbraceRF, alongside the acquisition of Jeisys Medical, further cementing InMode's role in advancing RF technology in aesthetics.

The company's extensive product lineup, including FaceTite, AccuTite, BodyTite, and the Evolve platform, caters to a wide range of procedures, from liposuction and skin tightening to non-invasive body contouring. This comprehensive suite of solutions reflects InMode's commitment to enhancing patient outcomes across various surgical specialties such as plastic surgery, dermatology, and gynecology. InMode's success is not just in its innovative product offerings but also in its financial performance, with revenues soaring from $15 million in 2013 to $300 million in 2020, a testament to its impactful presence in the global medical aesthetics market.

details of the inmode class action lawsuit

The InMode class action lawsuit, officially titled Cement Masons’ and Plasterers’ Local No. 502 Pension Fund v. InMode Ltd., has set significant milestones in the legal landscape for investors of InMode. Here are the critical details:
    Filing and Class Period:

• The lawsuit was filed on February 14, 2024, in the U.S. District Court, Central District of California.

• It represents investors who acquired InMode publicly traded securities between June 4, 2021, and October 12, 2023.

    Allegations and Investigation Highlights:

• InMode and certain top executives are charged with violations of the Securities Exchange Act of 1934, accused of making false and/or misleading statements or failing to disclose crucial information.

• Key investigative reports have revealed issues regarding InMode’s device discounting practices, U.S. Food and Drug Administration (FDA) clearance, and failure to submit mandatory reports on device malfunctions and injuries.

     Lead Plaintiff Process:

• Investors have until April 15, 2024, to seek lead plaintiff status, a role that entails significant responsibilities including hiring legal representation and acting on behalf of class members.

• The court will appoint the lead plaintiff based on their similarity to other claimants and their ability to represent the class effectively.

This lawsuit underscores the importance of corporate transparency and accountability, aiming to address the financial losses suffered by InMode investors due to alleged securities fraud.

Allegations Against InMode

​The InMode class action lawsuit highlights several allegations against the company and its executives, focusing on misleading practices and regulatory violations. These allegations have significantly impacted investor trust and the company's stock prices.
    Key Allegations:

1. Misleading Sales and Discount Practices:

• Threatened legal action against customers filing complaints about devices and sales tactics.
• Heavily discounted device prices, contrary to statements about pricing flexibility and product margin consistency.
• False statements about demand for devices, discounting practices, and FDA clearance

    2. Regulatory Violations:

• Engaged in off-label marketing, promoting products for unapproved treatments.
• Failed to timely report injuries caused by devices, violating FDA regulations

    3. Impact on Stock Prices:

• Stock price dropped by 3.27% following news of threatening legal action against customers.
• A significant 25.87% drop over two trading days after the disclosure of device discounting practices.
• Nearly 26% drop in stock price over two trading sessions after lowering full-year revenue guidance and the revelation of device discounting.

These allegations form the core of the class action lawsuit, seeking accountability for the misleading statements and regulatory violations that led to financial losses for investors.

Impact of the Allegations on Share Prices

The impact of the allegations on InMode's share prices can be dissected through a series of events that significantly influenced investor sentiment and market valuation:
   1.  Initial Drop Following Legal Threats:

• On February 17, 2023, an investigative publication highlighted that InMode customers were threatened with legal action after expressing dissatisfaction regarding the company’s devices and sales tactics. This revelation led to a noticeable decline in the price of InMode common stock, eroding investor confidence and reflecting negatively on the company's reputation.

    2. Subsequent Decline After Lowering Revenue Guidance:

• The situation exacerbated on October 12, 2023, when InMode announced a downward revision of its full-year revenue guidance. Citing factors such as higher interest rates, tighter leasing approval standards, and bottlenecks in loan processing, this announcement further dampened investor enthusiasm, contributing to a sharp decrease in stock value.

    3. Regulatory Concerns and Non-Compliance:

• Compounding the issue was the disclosure that InMode had failed to submit mandatory reports to the FDA regarding injuries and malfunctions related to its devices. This lack of compliance with regulatory requirements raised serious concerns about the company's operational integrity and risk management practices, further influencing the stock's downward trajectory.

These events collectively underscore the sensitivity of stock prices to corporate governance practices, regulatory compliance, and the management's handling of customer relations, illustrating the direct financial repercussions of the allegations against InMode.

The Process of Becoming a Lead Plaintiff

The process of becoming a lead plaintiff in the InMode class action lawsuit involves several critical steps, each designed to ensure that the chosen representative can effectively advocate on behalf of the entire class. Here is a breakdown of the process:
Eligibility and Selection Criteria:

• Must have purchased InMode common stock during the Class Period.

• Demonstrate a cognizable injury similar to other class members.
• Willingness and ability to serve in this role, considering factors like geographical location, nature of injuries, and financial impact.

Responsibilities and Expectations:

• Active participation in discovery, strategy sessions, and court hearings.

• Approval or rejection of settlement offers.
• Potential for being deposed by the defendant's counsel.

How to Apply:

• Contact a class action lawyer to understand eligibility and the application process.

1. ​Provide evidence of your investment in InMode and the losses suffered.
2. Submit a request to the court by the deadline of April 15, 2024, to be considered for lead plaintiff status.

Investors interested in applying for the role of lead plaintiff should ensure they meet the eligibility criteria and are prepared for the responsibilities it entails. The Law Offices of Timothy L. Miles can offer guidance through this process and help determine if an investor is suited to serve as a lead plaintiff at no charge and offer a free case evaluation.

CONCLUSION

Through an exploration of the InMode class action lawsuit and its multifaceted analyses, we have delved into the allegations of securities fraud that brought forth significant concerns for investors and stakeholders alike. The allegations, ranging from misleading sales and discount practices to regulatory violations, have undeniably cast a shadow over InMode's acclaimed trajectory in the medical technology sector, prompting a reevaluation of corporate governance and investor relations. As we scrutinize the impact these allegations have had on share prices, the narrative weaves a cautionary tale about the importance of transparency, regulatory compliance, and the management of investor expectations.
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As the legal proceedings march forward, the implications for InMode and its investors are yet to be fully realized, offering a critical vantage point for understanding the intricate balance between innovation, market performance, and ethical conduct. For those navigating the complexities of investment in high-growth sectors, the unfolding of this lawsuit underscores the necessity for rigorous due diligence and proactive engagement with corporate practices. Moreover, it accentuates the role of legal frameworks in holding corporations accountable, heralding further scrutiny and perhaps, fostering a more transparent dialogue between companies and their investor base in the future.

CONTACT AN INMODE​ STOCK LOSS LAWYER TODAY ABOUT AN INMODE CLASS ACTION LAWSUIT

​If you suffered losses in InMode​ stock, contact InMode​ stock loss lawyer Timothy L. Miles today for a free case evaluation about an InMode ​class action lawsuit. Call today and see what an InMode stock loss lawyer could do for you if you suffered losses in InMode​​​ ​stock.

The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027
Phone: (855) 846–6529
​Email: [email protected]

​

InMode​ 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.

CONTACT                                                      
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027
​​Phone: (855) 846-6529
​Email: [email protected]