Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against DermTech, Inc. (DMTK)
NEW YORK, Oct. 21, 2023 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of California on behalf of all persons or entities who purchased or otherwise acquired DermTech, Inc. (“DermTech” or the “Company”) (NASDAQ: DMTK) securities between May 3, 2022 and November 3, 2022, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint alleges that Defendants failed to disclose that: (1) DermTech experienced challenges with collections from commercial payors; (2) as a result, there was a lower average selling price for DermTech’s DMT; and (3) consequently, DermTech’s revenue growth would be adversely impacted. The Complaint 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.” On this news, DermTech’s stock price fell approximately 34%.
The Complaint 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” and 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.” On this news, DermTech’s stock price fell by nearly 45%.
Investors who purchased or otherwise acquired shares of DermTech should contact the Firm prior to the December 15, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
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