On February 1, 2019, Pomerantz LLP was appointed Lead Counsel in a class action lawsuit filed against PolarityTE, Inc. and certain of its officers. The investigation concerns whether PolarityTE and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On June 25, 2018, Citron Research ("Citron") issued a report describing PolarityTE as a "fraud" and calling for the U.S. Securities and Exchange Commission to halt trading of the stock. According to the Citron report, PolarityTE failed to disclose that a key technology patent application of the Company had been rejected by the U.S. Patent and Trademark Office days before the PolarityTE's June 5, 2018 stock offering. Following publication of the Citron report, PolarityTE's share price fell $10.59, or 27.34%, to close at $28.14 on June 25, 2018.