InMode Sued for Allegedly Hiding Demand, FDA Compliance Issues

InMode Ltd. and its top executives allegedly deceived customers, secretly discounted products, and violated Food and Drug Administration regulations before its biggest market selloff ever, a proposed class action lawsuit says.

The medical and cosmetic technology company hid the compliance issues, overstating the demand for its products until reports revealed InMode’s legal threats against customers who complained about its devices and sales tactics, which allegedly prompted a pair of stock drops, according to the complaint filed Wednesday in US District Court for the Central District of California.

InMode’s alleged misrepresentations began in June 2021, when Chief Financial Officer Yair Malca ...