NeuroMetrix, Inc. (NURO) reported that the United States District Court for the District of Massachusetts dismissed the consolidated federal securities class action lawsuit that had been pending against the company.
 
The lawsuit was filed against NeuroMetrix and certain of its officers on behalf of a purported class of investors (‘the plaintiffs’) who had purchased the company’s common stock between Oct 27, 2005 and Feb 12, 2008. The allegation was that NeuroMetrix had violated the federal securities laws by providing false and misleading statements and failed to disclose material information in various Securities and Exchange Commission (SEC) filings.
 
The United States District Court for the District of Massachusetts has dismissed the plaintiffs’ allegations in their entirety. However, the plaintiffs can appeal the Court’s decision. 
 
The Court’s actions provide a temporary relief to NeuroMetrix. NeuroMetrix designs, develops and sells proprietary medical devices to diagnose neuropathies, which are disturbances of the nervous system. Principally, the company offers physicians an in-office diagnostic system named the NC-stat System. The NC-stat System enables physicians to make rapid and accurate diagnoses of peripheral neuropathies, including carpal tunnel syndrome, low back and leg pain and diabetic peripheral neuropathy.
 
The NC-stat System is composed of disposable single use NC-stat biosensors that are placed on the patient’s body; the NC-stat monitor and related components; and the NC-stat docking station, an optional device that transmits data via the company’s onCall Information System. The NC-stat System has been on the market since May 1999.
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