PHILADELPHIA–(BUSINESS WIRE)–Kaskela Law LLC is investigating Apyx Medical Corporation (NASDAQ: APYX) (“Apyx” or the “Company”) on behalf of the Company’s stockholders.
In September 2019, a securities fraud complaint was filed against Apyx in federal court on behalf of certain purchasers of Apyx’s common stock. Among other things, the complaint alleged that Apyx violated the federal securities laws by making a series of materially false and misleading statements to investors between December 2018 and April 2019 concerning Apyx’s business, operations, and prospects.
As detailed in the complaint, on December 21, 2018, Apyx announced that it had submitted a 510(k) application for regulatory clearance with the FDA for the use of J-Plasma (a patented helium-based plasma surgical product) for dermal resurfacing based on the results of a clinical study. Also on that day, Apyx’s CEO stated: “We were very pleased with the clinical results of this study and we are optimistic in receiving regulatory clearance for this differentiated technology in 2019.”
However, on April 1, 2019, Apyx announced that it had withdrawn its application for regulatory clearance and disclosed that the study had failed to meet its primary efficacy endpoint. Additionally, the Company revealed that one of three investigational centers used in the study had deviated from protocol by prescribing a steroid to its patients. Following this news, shares of the Company’s stock declined $2.49 per share, or nearly 36% in value, to close at $4.46 per share on April 2, 2019.
The investigation seeks to determine whether the members of Apyx’s board of directors breached their fiduciary duties in connection with the above.
Current Apyx stockholders who purchased or acquired shares of the Company’s stock prior to December 21, 2018 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or via email at [email protected] or online at http://kaskelalaw.com/case/apyx-medical-corp/, to discuss this investigation and their legal rights and options.
Kaskela Law LLC represents investors in securities fraud, corporate governance, and merger & acquisition litigation. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com. This notice may constitute attorney advertising in certain jurisdictions.