NNOX FRAUD ALERT: HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Nano-X Imaging (NNOX) Investors to Contact Its Attorneys: Securities Fraud Case Filed, Hedge Funds Call NNOX “Theranos 2.0” and “Garbage”
GLOBE NEWSWIRE, 23 September 2020/em>
The complaint alleges that throughout the Class Period, Defendants concealed that Nano-X’s: (1) commercial agreements and customers were fabricated; (2) statements regarding its novel Nanox System were misleading; and (3) Nano-X’s submission to the FDA admitted the Nanox System was not original.
Investors allegedly began to learn the truth on Sept. 15, 2020, when Citron Research published a report accusing Nano-X of conducting “the most blatant stock promotion we have seen in years.” Citron challenged Nano-X’s claimed new innovative technology, stating “we have not even seen proof of the product and have only seen a mockup drawing of what this machine is supposed to look like.” Citron also alleged that Nano-X’s commercial agreements “appear to be no more than fake customers.”
Following this report, the price of Nano-X shares crashed sharply lower.
Then, on Sept. 17, 2020 Empire Financial Research issued a report, stating that Nano-X looks like “Theranos 2.0” and that “this stock is worthless.”
Finally, on Sept. 22, 2020 Muddy Waters published a report concluding that Nano-X “is a much bigger piece of garbage than Nikola will ever be,” based on interviews with radiologists and purported distributors. Muddy Waters stated Nano-X’s ARC device “appears to be little more than a futuristic movie prop” and “[i]n fact, an Israeli company that designed a pickup truck used in the movie Jurassic World claims credit for its design.”
“We’re focused on investors’ losses and proving Nano-X misrepresented the status of its X-ray source and commercial agreements,” said Reed Kathrein, the Hagens Berman partner leading the investigation.