Public records indicate that a class action lawsuit has been filed on behalf of investors in Apyx Medical (NASDAQ:APYX) in connection to alleged securities law violations by APYX. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Apyx Medical. between August 1, 2018 and April 1, 2019.
The class action complaint specifically alleges that during the period in question, APYX provided false and/or misleading material information and/or failed to disclose adverse material information to the public, namely: that the company’s J-Plasma clinical study had not reached its primary efficacy endpoint; that the study, whose subject involved the use in dermal resurfacing of a product for soft tissue cutting, coagulation, and ablation of soft tissue, failed to support the company’s regulatory clearance application; that the company’s application to use the J-Plasma product for dermal resurfacing had poor prospects of receiving clearance from regulators; and that consequently the company’s positive statements to the public during the relevant period were materially false and/or misleading. When an analysis published on February 21, 2019 alleged that the company’s J-Plasma study might have fallen short of endpoints, APYX declined in value by almost 25%, falling $2.10/share to a close of $6.40 on that date. When the company announced on April 1, 2019 that it had withdrawn its FDA application for the product, in response to FDA concerns about the device’s clinical performance, the company also disclosed that the study had not met its primary endpoint. Following this disclosure, APYX declined in value by more than 35%, falling $2.49/share to a close of $4.46/share on April 2, 2019. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, Apyx Medical is a medical technology company “solely focused on bringing transformative solutions to the physicians and patients it serves.” Its products include Renuvon, a helium plasma technology sold in the cosmetic surgery market, and the J-Plasma system, which its description says “allows surgeons to operate with a high level of precision and virtually eliminating unintended tissue trauma.” The company trades on the Nasdaq exchange under the symbol APYX.