DermTech, Inc. Class Action Lawsuit - DMTK
Case Summary
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The DermTech class action lawsuit seeks to represent purchasers or acquirers of DermTech, Inc. (NASDAQ: DMTK) securities between May 3, 2022 and November 3, 2022, inclusive (the “Class Period”). Captioned Bagheri v. DermTech, Inc., No. 23-cv-01885 (S.D. Cal.), the DermTech class action lawsuit charges DermTech and certain of its top current and former executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the DermTech class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the DermTech class action lawsuit must be filed with the court no later than December 15, 2023.
CASE ALLEGATIONS: DermTech is a molecular diagnostic company that develops and markets non-invasive genomics test to aid the diagnosis and management of skin cancer, inflammatory skin diseases, and aging-related skin conditions. The DermTech Melanoma Test (“DMT”) is a commercial test offered to assess pigmented skin lesions for melanoma.
The DermTech class action lawsuit alleges that defendants throughout the Class Period failed to disclose that: (i) DermTech experienced challenges with collections from commercial payors; (ii) as a result, there was a lower average selling price for DermTech’s DMT; and (iii) consequently, DermTech’s revenue growth would be adversely impacted.
The DermTech class action lawsuit further alleges that on August 8, 2022, DermTech announced its second quarter 2022 financial results and revealed that DermTech 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.” The complaint alleges that on this news DermTech’s stock price fell approximately 34%.
The DermTech class action lawsuit also alleges that on November 3, 2022, 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 DermTech class action lawsuit alleges that DermTech attributed the disappointing growth to “commercial payer collection challenges [have] affect[ed] estimating ASP [average selling price]” and that, as a result, DermTech expected “at least $13 million in assay revenue for the full-year 2022,” which is “below [its] previous guidance range.” The complaint alleges that on this news DermTech’s stock price fell by nearly 45%.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired DermTech securities during the Class Period to seek appointment as lead plaintiff of the DermTech class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the DermTech class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the DermTech class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the DermTech class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.