DermTech Investors Fall Short in Suit Over Test Patch Revenue

DermTech Inc. investors failed to establish an inference that the skin cancer test maker acted with fraudulent intent when it made allegedly false statements about its flagship product’s sales and revenue, a federal court ruled.

The investors adequately alleged the falsity of statements about Medicare coverage for the non-invasive melanoma detection patch, but failed to do so for three other sets of statements, Judge Dana M. Sabraw said Monday for the US District Court for the Southern District of California. The investors will have 45 days to revise their class action complaint.

San Diego-based DermTech filed a Chapter 11 petition ...