A Medical Device Daily
The law firm of Schatz Nobel Izard said it has filed a lawsuit seeking class action status with the U.S. District Court for the District of Massachusetts on behalf of those who purchased the common stock of NeuroMetrix, (Waltham, Massachusetts) between Oct. 27, 2005, and March 6, 2007.
The complaint alleges that NeuroMetrix and certain of its officers and directors issued false and misleading statements regarding the company’s NC-stat device, a strap-on or hand-held device that allows physicians to test for problems such qs carpal tunnel syndrome and back pain without needing a specialist’s exam.
According to the complaint, throughout the class period NeuroMetrix’s sales of its NC-stat device were artificially inflated as the efficacy of the company’s NC-stat device was highly questionable and concerns were being raised by practitioners; as health insurers were increasingly denying reimbursement for procedures using the device or raising significant payment issues; as the company instructed doctors to bill under the same codes as the competing needle procedure rather than applying for its own insurance billing code; and as the company was improperly giving doctors kickbacks in the form of free sensors for referring other doctors to the NC-stat system.
NeuroMetrix said it believes that the claims in the case are without merit and that it will defend the case vigorously.
NeuroMetrix makes devices that aid in the diagnosis and treatment of diseases of the nervous system and neurovascular disorders and to provide regional anesthesia and pain control.