Securities Fraud Complaint Filed Against Pulse Biosciences
A securities fraud lawsuit has been filed against Pulse Biosciences, Inc. (NASDAQ: PLSE) for potential securities violations on behalf of shareholders who purchased shares anytime during the period from January 12, 2021 through February 7, 2022. The release of potentially misrepresentative and misleading information, as well as failure to disclose material adverse facts to the public may have resulted in material losses for shareholders. The class action lawsuit has already been filed.
Copy of the Complaint Filed Against Pulse Biosciences
Allegations Involve CellFX System
In October 2020, Pulse initiated its investigational device exemption (“IDE”) study to evaluate the treatment of sebaceous hyperplasia lesions using the CellFX System. On February 8, 2022, before the market opened, Pulse announced that the U.S. Food and Drug Administration (“FDA”) concluded there was insufficient clinical evidence to support the Company’s 510(k) submission to expand the label for the CellFX System to treat sebaceous hyperplasia. Among other things, the FDA found “that the Company had not met the primary endpoints of the sebaceous hyperplasia FDA-approved IDE study.” On this news, on February 8, 2022 the Company’s share price fell over 34%, from $10.86 to close at $7.12 per share.
Summary of Securities Fraud Allegations
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors:
- The IDE study evaluating the use of the CellFX System to treat sebaceous hyperplasia lesions failed to meet its primary endpoints;
- As a result, there was a substantial risk that the FDA would reject Pulse’s 510(k) submission seeking to expand the label for the CellFX System to treat sebaceous hyperplasia lesions; and
- 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.
What Should You Do?
If you purchased shares of Pulse Biosciences common stock during the relevant time period, you may be entitled to compensation, without payment of any out-of-pocket litigation fees or costs. You may request the Court to appoint you as lead plaintiff for the class action no later than April 18, 2022. We urge investors to contact us. MDF Law PLLC, is a New York City based investor fraud law firm whose practice focuses on advocating for investors. We have helped to recover hundreds of millions of dollars for investors. We take all our cases on contingency, which means we do not collect a legal fee unless our clients recover money.