The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
- that a significant number of Apyx’s Advanced Energy products were used for off-label indications;
- that such off-label uses led to an increase in the number of medical device reports filed by Apyx reporting serious adverse events;
- that, as a result, the Company was reasonably likely to incur regulatory scrutiny;
- that, as a result of the foregoing, the Company’s financial results would be adversely impacted; and
- that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.