InMode Ltd.

On February 17, 2023, an investigative publication reported that InMode had threatened some customers with legal action over complaints made regarding the Company’s devices and sales tactics, with customers stating that the Company offered to replace defective products if they signed confidentiality agreements. On this news, InMode’s stock price fell $1.21, or 3.3%, to close at $35.81 per share on February 21, 2023, thereby injuring investors.

Then, on October 12, 2023, InMode lowered its full-year revenue guidance due to higher interest rates, tighter leasing approval standards, and bottlenecks in loan processing. Additionally, that same day, another investigative publication revealed that InMode had routinely and significantly discounted the prices of its devices. On this news, InMode’s stock price fell $7.24, or 25.9%, to close at $20.75 per share on October 13, 2023, thereby injuring investors further.

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: (1) the Company heavily discounts almost every device it sells; (2) demand for the Company’s products was driven by InMode’s willingness to discount its products; (3) the Company violated FDA regulations by engaging in off-label marketing and promoting products for treatment of indications for which they lack FDA approval; (4) the Company violated FDA regulations by failing to timely report injuries caused by its devices; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.