DermTech, Inc. (NASDAQ: DMTK)

This litigation is for anyone who acquired securities in DermTech, Inc. (NASDAQ: DMTK) from March 8, 2021 through November 3, 2022.

The lawsuit alleges the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by issuing guidance without a reasonable basis for doing so considering that the Company knew, but failed to disclose to investors, that insurers were increasingly refusing to pay for the Company’s DermTech Melanoma Test.

On August 8, 2022, DermTech disclosed that it was reducing its full-year 2022 outlook to reflect a lower average selling price (ASP) for the Company’s DermTech Melanoma Test (DMT). The Company claimed that “[t]he ASP pressure is primarily the result of Medicare billing code edits, which are expected to be improved in the coming quarters, as well as less favorable collection patterns from commercial payors.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on November 3, 2022, DermTech disclosed that “[w]e achieved meaningful year-over-year billable sample volume growth, but sequential growth was flat due to headwinds caused by limited commercial payer coverage.” The Company further disclosed that growth in utilization of DMT with certain customers “is tempered because of typical payor tactics to impede our adoption momentum” and that as a result “we expect to finish 2022 below our previous guidance range.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in DermTech, Inc. (NASDAQ: DMTK) from March 8, 2021 through November 3, 2022 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.