NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of those who acquired DermTech, Inc. (“DermTech” or the “Company”) (NASDAQ: DMTK) securities during the period from May 3, 2022 through November 3, 2022, inclusive (the “Class Period”). Investors have until December 15, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On August 8, 2022, DermTech announced its second quarter 2022 financial results, reporting that the Company expected a lower average selling price for its DermTech Melanoma Test due to Medicare billing code edits and less favorable collection patterns from commercial payors. On this news, the price of DermTech shares declined by $2.87, or approximately 34.05%, from $8.43 per share to close at $5.56 on August 9, 2022.
On November 3, 2022, DermTech announced its third quarter 2022 financial results, reporting that billable sample volume sequential growth was flat due to headwinds caused by limited commercial payer coverage. As a result, DermTech expected at least $13 million in assay revenue for the full-year 2022, which is below the Company’s previous guidance range. On this news, the price of DermTech shares declined by $1.34, or approximately 44.77%, from $3.00 per share to close at $1.66 on November 4, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) DermTech experienced challenges with collections from commercial payors; (ii) as a result, there was a lower average selling price for the Company’s DermTech Melanoma Test; and (iii) as a result of the foregoing, the Company’s revenue growth would be adversely impacted.
If you purchased or otherwise acquired DermTech securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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