PolarityTE, Inc. (PTE) Accused of Lying About the Status of Its Patent
According to the filed class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 31, 2017 and June 22, 2018, PolarityTE, Inc. (PTE) on April 7, 2017 announced that the company bought Dr. Denver Lough’s pending Patent #14/954,335 (the “Patent”) in exchange for over $104 million of PolarityTE stock. Although Dr. Lough received a notice of non-final rejection of the Patent on March 31, 2017, PolarityTE never disclosed this fact to investors, and even represented the Patent was already patented. It therefore came as a surprise to investors when Citron Research published a report on June 25, 2018, revealing that PolarityTE failed to disclose that the U.S. Patent Trademark Office had issued a final rejection of the Patent on June 4, 2018. On this news, PolarityTE’s stock plunged more than 27% to close at $28.14 per share on June 25, 2018, and currently trades at just about half that price.
PolarityTE, Inc. (PTE) Shareholders Have Legal Options
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