SAN DIEGO & NEWTON, Pa.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Helius Medical Technologies, Inc. (NASDAQ: HSDT) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between November 9, 2017 and April 10, 2019. Helius Medical Technologies is a neurotechnology company that focuses on developing, licensing, or acquiring noninvasive technologies for neurological treatment.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/helius-medical-technologies-inc/
Helius Medical Technologies Accused of Misleading Shareholders
According to the complaint, in November 2017, Helius touted statistically significant positive results from its clinical trial evaluating the efficacy of its Portable Neuromodulation Stimulator ("PoNS") for traumatic brain injury, which prompted Helius' submission for de novo classification and 510(k) clearance with the FDA. Despite the alleged positive trial results, in January 2019, Helius announced that the FDA had requested additional information, but assured investors that it had the data to address the FDA's questions. Helius' positive assurances were materially false and misleading as they failed to disclose that the clinical study did not actually produce statistically significant results to support PoNS' efficacy in treatment and therefore Helius lacked sufficient data to support regulatory clearance and approval of PoNS. The truth was finally revealed in April 2019, when Helius disclosed that the FDA had denied clearance of PoNS due to insufficient data supporting its efficacy. On this news, Helius' share price fell $4.11, more than 66%, to close at $2.10, and has yet to recover.
Helius Medical Technologies Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, firstname.lastname@example.org 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. Check out Stock Watch, our free investment monitoring program for shareholders.
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