Nano-X Imaging Ltd. Class Action Lawsuit

Company Name
Nano-X Imaging Ltd.
Stock Symbol
Class Period
August 21, 2020 to September 15, 2020
Eastern District of New York

Case Summary

The Nano-X Imaging Ltd. class action lawsuit charges Nano-X and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Nano-X securities between August 21, 2020 and September 15, 2020, inclusive (the “Class Period”).  The Nano-X class action lawsuit was commenced on September 16, 2020 in the Eastern District of New York and is captioned White v. Nano-X Imaging Ltd., No. 20-cv-04355.

Nano-X purportedly develops and produces x-ray source technology for the medical imaging industry.  Nano-X’s x-ray imaging solution, called the “Nanox System,” includes two integrated components – hardware (“Nanox.ARC”) and software (“Nanox.CLOUD”).  The Nanox.ARC has not been approved by regulators.  The Nanox System is purportedly designed to enable medical screening as a service to improve accessibility and affordability of early detection.

The Nano-X class action lawsuit alleges that during the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Nano-X’s commercial agreements and its customers were fabricated; (2) Nano-X’s statements regarding its “novel” Nanox System were misleading, as Nano-X never provided data comparing its images with images from competitors’ machines; (3) Nano-X’s submission to the U.S. Food and Drug Administration (“FDA”) admitted the Nanox System was not original; and (4) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.

On September 15, 2020, Citron Research published a report entitled “Nano-X Imaging (NNOX) A Complete Farce on the Market – Theranos 2.0.”  The Citron report summarized Nano-X as a “$3 billion company [that] is nothing more than a science project with a simple rendering, minimal [research and development], fake customers, no FDA approval, and fraudulent claims that are beyond the realm of possibility.”  In addition, the Citron report concluded that Nano-X’s claims about its customers with commercial agreements were false.  The Citron report also discussed how Nano-X had not published any data comparing images from its machines with other x-ray machines and that Nano-X’s statement that it was creating a novel solution to medical imaging was false.  On this news, the price of Nano-X shares fell more than 25% over the next two trading days, damaging investors.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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