This is a securites fraud class action lawsuit against NeuroMetrix and certain of its officers and directors.
NeuroMetrix designs, develops, and sells medical devices used to diagnose neuropathies and neurovascular disease in the United States.
The securities class action lawsuit alleges that NeoroMetrix issued materially false and misleading statements regarding the NeuroMetrix's NC-stat device, which is a strap-on or hand-held device that allows physicians, usually general practitioners, to test for problems like carpal tunnel syndrome and back pain without the need for an exam from a specialist.
According to the class action complaint, throughout the Class Period, unbeknownst to shareholders, NeuroMetrix's sales of its NC-stat device were artificially inflated as:
(i) the efficacy of NeoroMetrix's NC-stat device was highly questionable and concerns were being raised by practitioners;
(ii) health insurers were increasingly denying reimbursement for procedures using NeoroMetrix's NC-stat device or raising significant payment issues;
(iii) NeoroMetrix instructed doctors to bill under the same insurance billing codes as the competing needle procedure rather than applying for its own insurance billing code in order to enable practitioners to get reimbursement; and
(iv) NeoroMetrix was improperly giving doctors kickbacks in the form of free sensors for referring other doctors to the NC-stat system.
As the truth began to be disclosed, shares of NeuroMetrix common stock plummeted, causing substantial losses to investors.
Name (Stock Symbol)
NeuroMetrix Inc. (NURO)
NeuroMetrix, Inc. designs, develops, and sells medical devices.
The information provided on ClassAdvocate.com is general in nature,
does not apply to any particular factual situation, and is not and
should not be taken as legal or other professional advice. We make no
commitment or warranty that the factual, legal or any other information
on ClassAdvocate.com, or on any linked website, is accurate, complete,
error-free, or current. As such, you should not rely on such information,
and should seek professional advice if and as you determine appropriate.
ClassAdvocate.com is not a lawyer referral service, and no attorney-client
or confidential relationship is or should be formed by use of the site.
The investigations listed on ClassAdvocate.com are attorney advertisements
and do not in any way constitute a referral or endorsement by ClassAdvocate.com
or any approved or authorized lawyer referral service.