InMode Ltd (INMD: NSD) is facing a class action lawsuit alleging securities fraud. The lawsuit, filed on behalf of investors who purchased InMode stock between June 4, 2021, and October 12, 2023, claims that the company made false and misleading statements about its business practices.
Overview of Class Action Lawsuit Against InMode Ltd:
The core allegations center on four main points:
- Discounted Sales: The lawsuit alleges that InMode downplayed the extent to which they discounted their devices, portraying them as selling at full price to suggest strong demand.
- Inflated Demand: Investors claim InMode misled them about the true level of organic demand for their products, implying it was higher than what discounts actually drove.
- Off-Label Marketing: The suit alleges InMode violated FDA regulations by promoting devices for unapproved uses.
- Underreported Injuries: The lawsuit claims InMode failed to properly report injuries caused by their devices to the FDA.
What do Market Analysts Say about InMode Ltd?
The consensus on InMode Ltd. is also promising. Three market analysts covering the company rated it, on average, as a ‘Buy’ with an average target price of $27.38. This assessment aligns with Stock Target Advisor‘s analysis indicating relative market optimism.
Meanwhile, within the “Medical Devices” sector on the NSD exchange, differing perceptions may exist. Therefore, careful consideration will be necessary in evaluating InMode’s overall rating.
Bottom Line:
The lawsuit is currently in the early stages, and it will likely take some time before it is resolved. Investors should stay informed about any court rulings or settlements related to the case.
