NEW YORK, Feb. 18, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of LuxUrban Hotels Inc. (NASDAQ: LUXH), and InMode Ltd. (NASDAQ: INMD). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
LuxUrban Hotels Inc. (NASDAQ: LUXH)
Class Period: November 8, 2023 - February 2, 2024
Lead Plaintiff Deadline: April 12, 2024
On January 17, 2024, Bleeker Street Research published a report, which alleged that the Company had not actually signed a lease with the Royalton Hotel. The report started the owner of the Royalton hotel building confirmed LuxUrban never actually signed a lease, nor even provided a Letter of Credit. The report also alleged the Company was embroiled in a number of lawsuits that “allege LuxUrban failed to pay rent repeatedly,” and “in the last six months has been sued by landlords at four of their properties for unpaid rent” but that LuxUrban had “never once disclosed the nature of these lawsuits.”
On this news, the Company’s stock price fell $0.58, or 12% to close at $4.32 on January 17, 2024, on unusually heavy trading volume. The stock price continued to fall an additional $0.42, or 10%, to close at $3.89 on January 18, 2024, on unusually heavy trading volume.
Then on February 2, 2024, after the market closed, LuxUrban announced the “termination of discussions to add the Royalton Hotel to its roster of properties” and that it was “withdrawing its prior statements regarding the Royalton” including prior quarterly reports which listed the Royalton under “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Property Summary—Properties under lease, not operating.”
On this news, the Company’s stock price fell $0.99, or 22%, to close at $3.50 per share on February 5, 2024, 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 had not signed a lease with the Royalton Hotel; (2) that, as a result, LuxUrban’s total reported units was overstated; (3) that LuxUrban faced multiple lawsuits for unpaid rent;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.
For more information on the LuxUrban class action go to: https://bespc.com/cases/LUXH
InMode Ltd. (NASDAQ: INMD)
Class Period: June 4, 2021 - October 12, 2023 (Common Stock Only)
Lead Plaintiff Deadline: April 15, 2024
InMode is a global provider of aesthetic medical devices and technology, including devices purporting to offer body sculpting and other rejuvenation technologies. The Company’s target customers include dermatologists, dentists, obstetricians and gynecologists, and medical spas.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and omissions concerning two topics that are of critical importance to investors: (1) the price at which InMode sells its devices, which reflects the demand for those products; and (2) InMode’s compliance with U.S. Food and Drug Administration (“FDA”) regulations, including the FDA’s prohibition on off-label marketing of devices and the FDA’s requirements for the reporting of injuries. Specifically, Defendants repeatedly touted the demand for InMode’s devices and told investors that those devices were never sold at a discount. InMode also assured investors that it had “obtained [FDA] clearance for the current treatments for which we offer our products” and that “no third-party claims have been brought against us to date.” As a result of these misrepresentations, the price of InMode common stock traded at artificially inflated prices throughout the Class Period.
According to the complaint, in reality, throughout the Class Period, InMode routinely discounted the prices of its devices and violated FDA regulations by promoting the off-label use of its devices, and by failing to properly report injuries caused by its devices.
The complaint further alleges that the truth began to emerge just before the market closed on February 17, 2023, when an investigative publication revealed that InMode threatened some customers with legal action over complaints made about the Company’s devices and sales tactics. The customers also stated that InMode offered to replace defective products on the condition of signing confidentiality agreements with non-disparagement clauses. However, despite these disclosures, InMode continued to misrepresent the pricing of, and demand for, its products.
Then, on October 12, 2023, before the market opened, InMode lowered its full-year revenue guidance, which the Company blamed on higher interest rates, tighter leasing approval standards, and bottlenecks in loan processing. Later that same day, an investigative publication announced a forthcoming report on InMode, relating to the Company’s statements to investors about pricing flexibility of products and margin consistency. After the close of trading, the publication released a story revealing that InMode significantly discounted the prices of its devices on a routine basis throughout the Class Period. As a result of these disclosures, the price of InMode common stock declined precipitously.
For more information on the InMode class action go to: https://bespc.com/cases/INMD
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
