SAN DIEGO & SALT LAKE CITY--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of PolarityTE, Inc. (NasdaqCM: COOL) 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: www.robbinsarroyo.com/polarityte-inc
PolarityTE Accused of Failing to Disclose Non-Final Rejection of 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. On May 29, 2018, the company filed an S-8 registration, which would allow management and promoters to sell hundreds of millions of dollars of common stock. Less than a week later, on June 4, 2018, the U.S. Patent Trademark Office issued a final rejection for the Patent. On June 25, 2018, Citron Research published a report exposing PolarityTE's failure to disclose the company's prior notice of non-final rejection of the Patent. On this news, PolarityTE's stock plunged more than 27% to on June 25, 2018, and continues in a downward spiral, closing at $23.34 on June 29.
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.
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