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Cohen Milstein Sellers & Toll PLLC Announces the Investigation of PhotoMedex, Inc.

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WASHINGTON--(BUSINESS WIRE)--

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether PhotoMedex, Inc. (“PhotoMedex” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. As a result of its December 2011 merger with Radiancy Inc., PhotoMedex added a range of home-use devices under the no!no!™ brand, for various indications, including hair removal, acne treatment and skin rejuvenation.

A class action lawsuit was filed in the U.S. District Court for the Eastern District of Pennsylvania by another law firm on behalf of purchasers of the common stock of PhotoMedex, Inc. (NASDAQ: PHMD) between November 7, 2012, and November 14, 2013, inclusive (the “Class Period”).

The complaint alleges that PhotoMedex and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) the effectiveness of the Company's key product, the no!no! device, rested on “flimsy, weak studies” and a more credible study showed that the product did not work any better than shaving; (2) the Company materially overstated the prospects for the no!no! device in the Japanese market; and (3) as a result of the foregoing, the Company's financial statements and announcements regarding its growth, operations and business prospects during the Class Period were false and misleading.

The claims in this case are based on two negative reports about PhotoMedex published by TheStreetSweeper.org. The first article, titled “PhotoMedex: Just Say No!No!”, raised questions and concerns about the efficacy and declining sales of the Company's no!no! hair removal device, the checkered past of its Chairman, Lewis Pell, and one of its largest shareholders, Shlomo Ben Haim, and predicted that disappointing earnings were on the horizon.

The second TheStreetSweeper article, titled, “PhotoMedex (PHMD): No!no! Doesn't cut it”, reiterated some of the concerns raised in the previous article, but primarily focused on the Company's recent revenue and earnings miss due to a complete lack of sales in Japan. The article's authors said they were “skeptical” of the Company's excuse for the lack of third quarter sales in Japan—stating that the Company had attributed the lack of sales to a change in business plan by its exclusive distributor of its no!no! brand in Japan, Ya-Man Ltd. The article speculated that a large write down could be on the horizon, stating that “$43.2 million worth of product is at risk. That's obviously terrible news for a company with revenue of only $45.9 million.” TheStreetSweeper article also raised the specter of possible accounting issues, asking, “what role is the company's auditor playing in the Japanese arrangements? And why is a $260 million company using a little-known Israeli auditor? Doesn't PHMD- - and its investors - - deserve an established Big 4 auditing firm?”

Cohen Milstein encourages all investors who purchased PhotoMedex common stock between November 7, 2012, and November 14, 2013, or former employees with information concerning this matter to contact the firm.

If you are a PhotoMedex shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein's Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you wish to serve as lead plaintiff, you must move the Court no later than January 21, 2014 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.

The firm's reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over one billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.
Asha Williams
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com; awilliams@cohenmilstein.com

Attorney Advertising

Cohen Milstein Sellers & Toll PLLC
Steven J. Toll, Esq.
888-240-0775 or 202-408-4600
stoll@cohenmilstein.com
or
Asha Williams
888-240-0775 or 202-408-4600
awilliams@cohenmilstein.com

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