Lawsuit Overview
March 21, 2011 - The U.S. Court of Appeals for the First Circuit ordered the judgment of the district court is affirmed and the case is dismissed.
January 6, 2010- The plaintiffs filed a notice of appeal.
December 14, 2009 - The defendants' motion to dismiss was granted.
January 30, 2009 - The defendants filed a motion to dismiss.
November 10, 2008 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased (NASDAQ: NURO) common shares between October 27, 2005 to February 12, 2008. The plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 27, 2005 to February 12, 2008.
July 9, 2008 - Lead plaintiff and lead counsel were appointed.
June 13, 2008 - All cases were consolidated.
March 27, 2008 - Another investor filed a complaint.
March 17, 2008- An investor in shares of NeuroMetrix Inc (NASDAQ: NURO) filed a lawsuit in the U.S.District Court for the District of Massachusetts over alleged violations of Federal Securities Laws.
The plaintiff alleges that, NeuroMetrix Inc and certain of its officers and directors with violations of the Securities Exchange Act of 1934. NeuroMetrix Inc designs, develops, and sells medical devices used to diagnose neuropathies and neurovascular disease in the United States. Specifically, the complaint alleges that, between October 27, 2005 and March 6, 2007, defendants issued materially false and misleading statements regarding the Company’s NC-stat device, which is a strap-on or hand-held device that allows physicians, usually general practitioners, to test for problems like carpal tunnel syndrome and back pain without the need for an exam from a specialist.
According to the complaint, between October 27, 2005 and March 6, 2007, unbeknownst to shareholders, NeuroMetrix Inc's sales of its NC-stat device were artificially inflated as: (i) the efficacy of the Company’s NC-stat device was highly questionable and concerns were being raised by practitioners; (ii) health insurers were increasingly denying reimbursement for procedures using the Company’s NC-stat device or raising significant payment issues; (iii) the Company instructed doctors to bill under the same insurance billing codes as the competing needle procedure rather than applying for its own insurance billing code in order to enable practitioners to get reimbursement; and (iv) the Company was improperly giving doctors kickbacks in the form of free sensors for referring other doctors to the NC-stat system. As the truth began to be disclosed, shares of NeuroMetrix Inc (NASDAQ: NURO) common stock plummeted, causing substantial losses to investors.