NEW YORK, NY / ACCESSWIRE / August 22, 2018 / Pomerantz LLP announces that a class action lawsuit has been filed against PolarityTE ("PolarityTE" or the "Company") (COOL) and certain of its officers. The class action, filed in United States District Court, District of Utah, and docketed under 18-cv-00541, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired PolarityTE securities between March 31, 2017 and June 22, 2018, both dates inclusive (the "Class Period"). Plaintiff seeks to recover compensable damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased PolarityTE securities between March 31, 2017, and June 22, 2018, both dates inclusive, you have until August 27, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
PolarityTE purports to be a commercial-stage biotechnology and regenerative biomaterials company focused on discovering, designing and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering, and material sciences. The Company's key development is SkinTE, which is intended to be used by physicians or other appropriate healthcare providers for homologous uses of skin tissues/integument. Patients who have suffered from an event, disease, process or acquired deficit that results in the functional loss or void of skin/integument systems can receive SkinTE as an adjunct and/or in place of split-thickness skin grafting, full-thickness grafting, temporizing skin coverage and/or skin substitute products.
On April 7, 2017, PolarityTE announced the closing of a transaction through which the Company purchased Dr. Denver Lough's ("Lough") pending Patent #14/954,335 (the "Patent") in exchange for over $104 million of PolarityTE stock.
Just one week prior to the closing of the transaction, on March 31, 2017, Dr. Lough received a notice of non-final rejection of the Patent by the U.S. Patent and Trademark Office ("USPTO"). The USPTO mailed Dr. Lough a letter indicating the non-final rejection of the Patent on April 7, 2017—the same day that the transaction closed.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, PolarityTE made false and/or misleading statements and/or failed to disclose that: (i) the USPTO issued a notice of non-final rejection of the Patent before PolarityTE acquired it in exchange for over $104 million of Company stock in April 2017; (ii) the USPTO issued a final rejection of the Patent on June 4, 2018; and (iii) as a result, PolarityTE's public statements were materially false and misleading at all relevant times.
On June 25, 2018, Citron Research published a report exposing the Defendants' failure to disclose the USPTO's March 31, 2017 notice of non-final rejection of the Patent and highlighting the USPTO's June 4, 2018, final rejection of the Patent.
On this news, PolarityTE's share price fell $10.59, or 27.3%, to close at $28.14 on June 26, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
SOURCE: Pomerantz LLP