SAN DIEGO & SALT LAKE CITY--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of PolarityTE, Inc. (NasdaqCM: PTE) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 31, 2017 and June 22, 2018. PolarityTE operates as a commercial-stage biotechnology and regenerative biomaterials company in the United States.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/polarityte-inc-oct-2018/
PolarityTE Accused of Lying About the Status of Its Patent
According to the complaint, on April 7, 2017, PolarityTE announced that the company bought Dr. Denver Lough's pending Patent #14/954,335 (the "Patent") in exchange for over $104 million of PolarityTE stock. Although Dr. Lough received a notice of non-final rejection of the Patent on March 31, 2017, PolarityTE never disclosed this fact to investors, and even represented the Patent was already patented. It therefore came as a surprise to investors when Citron Research published a report on June 25, 2018, revealing that PolarityTE failed to disclose that the U.S. Patent Trademark Office had issued a final rejection of the Patent on June 4, 2018. On this news, PolarityTE's stock plunged more than 27% to close at $28.14 per share on June 25, 2018, and currently trades at just about half that price.
PolarityTE Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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