NEW YORK, Dec. 9, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP announces the filing of a class action lawsuit against PhotoMedex, Inc. ("PhotoMedex" or the "Company") (Nasdaq:PHMD) and certain of its officers. The class action, filed in United States District Court, Eastern District of Pennsylvania, on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of PhotoMedex between November 7, 2012 and November 14, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased PhotoMedex securities during the Class Period, you have until January 21, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
PhotoMedex is a global skin health company providing integrated disease management and aesthetic solutions to dermatologists, professional and aestheticians and consumers.
The Complaint alleges that throughout the Class Period, Defendants made false and/ or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and misleading statements and/or failed to disclose that: (i) the effectiveness of the Company's key product, the no!no! device, rested on weak studies; (ii) a more credible study raised serious doubts as to the effectiveness of the Company's key product, and in fact showed that no!no! works no better than shaving; (iii) the Company materially overstated the prospects for the no!no! device in the Japanese market; and (iv) as a result of the above, the Company's financial statements, assurances and expectations with regard to the Company's growth, operations, and business prospects were false and misleading at all relevant times.
On October 17, 2013, The StreetSweeper.org published a report raising serious concerns regarding, among other things, the ineffectiveness and decreasing sales of the Company's key product the no!no! device. On this news, PhotoMedex shares declined $0.50 per share or 3.24%, to close at $14.91 per share on October 17, 2013.
On November 6, 2013, the Company issued a press release, reporting the Company's third quarter financial and operating results for the quarter ending September 30, 2012, in which it confirmed TheStreetSweeper's allegations that the Company had overstated its prospects for the no!no! device in the Japanese market. Specifically, PhotoMedex admitted that there were "no consumer sales to the Company's distributor in Japan." On this news, PhotoMedex shares fell $1.13 per share or 8.84%, from a closing price of $12.78 per share on November 5, 2013 to a closing price of $11.65 per share on November 6, 2013.
Finally, on November 14, 2013, TheStreetSweeper.org published another report reiterating some of the previous issues mentioned in its October 17, 2013 article while raising additional significant concerns about the effectiveness and sales of the no!no! device. On this news, shares of PhotoMedex's declined $2.65 or 17.2% from its closing price of $15.41 per share on October 16, 2013, to a closing price of $12.76 per share on November 15, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.