New York City, New York - (NewMediaWire) - August 12, 2019 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Helius Medical Technologies, Inc. (NASDAQ: HSDT) ("Helius" or the "Company") of the September 9, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Helius stock or options between November 9, 2017 and April 10, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/HSDT. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Helius securities between November 9, 2017 and April 10, 2019 (the "Class Period"). The case, Caramihai v. Helius Medical Technologies, Inc. et al., No. 19-cv-06365 was filed on July 9, 2019, and has been assigned to Judge Loretta A. Preska.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (1) that the clinical study on the use of its Portable Neuromodulation Stimulator ("PoNS") device did not produce statistically significant results regarding the effectiveness of the treatment; (2) that, as a result, the clinical study did not support the Company's application for regulatory clearance; (3) that, as a result, the Company was unlikely to receive regulatory approval of PoNS; and (4) 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.
On January 25, 2019, the Company announced that it had received a request for additional data and information from the U.S. Food and Drug Administration (the "FDA") related to the Company's request for de novo classification and 510(k) clearance of PoNS.
On this news, Helius's share price fell from $7.61 per share on January 24, 2019 to a closing price of $7.13 on January 25, 2019: a $0.48 or a 6.31% drop.
On April 10, 2019, the Company revealed that the FDA had denied regulatory clearance of the PoNS device because the Company had not provided sufficient clinical data to show the device was effective.
On this news, Helius's share price fell from $6.21 per share on April 9, 2019 to a closing price of $2.10 on April 10, 2019: a $4.11 or a 66.18% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Helius's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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