STRATA Skin Sciences Announces Favorable Court Order in Complaint Against LaserOptek, Monarch Laser Services, and The Pinnacle Health Group
STRATA Skin Sciences (NASDAQ: SSKN) announces a favorable court order in its complaint against LaserOptek, Monarch Laser Services, and The Pinnacle Health Group. The order, issued by the US District Court for Eastern Pennsylvania, enjoins LaserOptek and Pinnacle from marketing Pallas lasers with claims about CPT Codes 96920-96922 reimbursement and prohibits false statements about Pallas or STRATA lasers. The ruling follows STRATA's August 2024 complaint citing unfair competition. The company will continue pursuing claims for equitable and monetary relief, defending against what it describes as misleading practices regarding non-excimer laser reimbursement claims.
STRATA Skin Sciences (NASDAQ: SSKN) annuncia un'ordinanza favorevole da parte del tribunale riguardo alla sua denuncia contro LaserOptek, Monarch Laser Services e The Pinnacle Health Group. L'ordine, emesso dal Tribunale Distrettuale degli Stati Uniti per l'Est della Pennsylvania, vieta a LaserOptek e Pinnacle di commercializzare i laser Pallas con affermazioni sui rimborsi dei codici CPT 96920-96922 e proibisce dichiarazioni false sui laser Pallas o STRATA. La sentenza segue la denuncia di STRATA di agosto 2024 che cita concorrenza sleale. L'azienda continuerà a perseguire richieste di indennizzo equo e monetario, difendendosi da quelle che descrive come pratiche ingannevoli riguardanti le richieste di rimborso per laser non eccimeri.
STRATA Skin Sciences (NASDAQ: SSKN) anuncia una orden judicial favorable en su denuncia contra LaserOptek, Monarch Laser Services y The Pinnacle Health Group. La orden, emitida por el Tribunal de Distrito de EE.UU. para el Este de Pennsylvania, prohíbe a LaserOptek y Pinnacle comercializar láseres Pallas con reclamaciones sobre los códigos de reembolso CPT 96920-96922 y prohíbe declaraciones falsas sobre los láseres Pallas o STRATA. La resolución sigue a la denuncia de STRATA de agosto de 2024 que cita competencia desleal. La compañía continuará persiguiendo demandas de reparación equitativa y monetaria, defendiendo su posición contra lo que describe como prácticas engañosas relacionadas con reclamaciones de reembolso de láseres no excímeros.
STRATA Skin Sciences (NASDAQ: SSKN)이 LaserOptek, Monarch Laser Services 및 The Pinnacle Health Group을 상대로 제기한 소송에서 유리한 법원 명령을 발표했습니다. 이 명령은 펜실베니아 동부 연방법원에서 발부된 것으로, LaserOptek과 Pinnacle이 CPT 코드 96920-96922에 대한 재정 지원 주장과 관련하여 Pallas 레이저를 마케팅하는 것을 금지하며, Pallas 또는 STRATA 레이저에 대한 허위 진술을 금지합니다. 이 판결은 STRATA의 2024년 8월 불공정 경쟁 관련 소송에 따른 것입니다. 회사는 공정하고 금전적인 구제를 위한 청구를 계속 추구할 것이며, 비술소 레이저에 대한 재정 지원 주장과 관련된 오도하는 행위에 대해 방어할 것입니다.
STRATA Skin Sciences (NASDAQ: SSKN) annonce une décision judiciaire favorable dans sa plainte contre LaserOptek, Monarch Laser Services et The Pinnacle Health Group. L'ordre, émis par le tribunal de district des États-Unis pour l'est de la Pennsylvanie, interdit à LaserOptek et à Pinnacle de commercialiser des lasers Pallas avec des allégations concernant le remboursement des codes CPT 96920-96922 et prohibe les déclarations mensongères concernant les lasers Pallas ou STRATA. Ce jugement fait suite à la plainte déposée par STRATA en août 2024 pour concurrence déloyale. L'entreprise continuera à poursuivre des demandes de réparation équitable et monétaire, se défendant contre ce qu'elle qualifie de pratiques trompeuses concernant les demandes de remboursement pour des lasers non excimères.
STRATA Skin Sciences (NASDAQ: SSKN) gibt eine günstige gerichtliche Anordnung bekannt, die in ihrer Klage gegen LaserOptek, Monarch Laser Services und The Pinnacle Health Group erlassen wurde. Die Anordnung, erlassen vom US-Bezirksgericht für den östlichen Teil von Pennsylvania, verbietet LaserOptek und Pinnacle die Vermarktung von Pallas-Lasern mit Ansprüchen über die Erstattung der CPT-Codes 96920-96922 und untersagt falsche Aussagen über Pallas- oder STRATA-Laser. Das Urteil folgt auf die Klage von STRATA im August 2024, die wegen unlauterem Wettbewerb eingereicht wurde. Das Unternehmen wird weiterhin Ansprüche auf gerechte und finanzielle Entschädigung verfolgen und sich gegen das wendet, was es als irreführende Praktiken in Bezug auf die Erstattung von nicht-exzimer Lasern bezeichnet.
- Favorable court order protecting STRATA's market position and intellectual property
- Legal victory preventing competitors from making false reimbursement claims
- Protection of revenue stream by preventing improper use of CPT codes
- Ongoing legal expenses from continuing litigation
- Company reports significant monetary and reputational damages from competitors' actions
Insights
This court order represents a significant victory for STRATA Skin Sciences in protecting their market position and intellectual property. The injunction effectively blocks LaserOptek and its partners from making potentially misleading claims about insurance reimbursement codes, which is important for STRATA's business model. The court's decision specifically prevents competitors from implying their non-excimer laser treatments qualify for CPT codes 96920-96922, which were established specifically for excimer laser treatments.
The ruling has important implications for both revenue protection and market competition. By preventing false claims about reimbursement eligibility, STRATA maintains its competitive advantage in the excimer laser treatment space. The company's pursuit of monetary damages suggests potential recovery of lost revenues, while the injunction helps prevent future market share erosion.
This development has strategic importance in the medical device market. STRATA's XTRAC excimer laser technology holds a distinct clinical advantage and this ruling helps maintain its differentiation from competing technologies. The court order effectively prevents market confusion between excimer and non-excimer laser treatments, which is important for maintaining pricing power and market position.
The impact extends beyond immediate competition - it sets a precedent for how medical device companies can protect their specialized treatment codes and technology differentiation. This could strengthen STRATA's position in negotiating with insurance companies and maintaining their reimbursement rates, which is vital for their business model and future growth.
HORSHAM, Pa., Nov. 11, 2024 (GLOBE NEWSWIRE) -- STRATA Skin Sciences, Inc. (“STRATA” or the “Company”) (NASDAQ: SSKN), a medical technology company dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, announces that the United States District Court for the Eastern District of Pennsylvania entered a court order in favor of the Company in its complaint against LaserOptek America Corp. (“LaserOptek”), Monarch Aesthetic Services, Inc. d/b/a Monarch Laser Services (“MLS”), and The Pinnacle Health Group (“Pinnacle”), collectively referred to as the “Defendants.”
On August 19, 2024, STRATA filed a Complaint and a Motion for a Preliminary Injunction against the Defendants, citing unfair competition under federal and state laws regarding the marketing and sales of LaserOptek’s Pallas lasers in the United States. On November 8, 2024, the United States District Court for the Eastern District of Pennsylvania entered a court order pursuant to which:
- LaserOptek and The Pinnacle Health Group, their employees, agents, sales representatives, distributors, officers, directors, and all those acting at their direction are enjoined from engaging in any sales, advertising, marketing or promotion of Pallas lasers that states or implies, directly or indirectly, that treatments with Pallas laser systems are reimbursable using CPT Codes 96920-96922; and
- LaserOptek and The Pinnacle Health Group, their employees, agents, sales representatives, distributors, officers, directors, and all those acting at their direction are further barred from engaging in any sales, advertising, marketing or promotion of Pallas lasers in the United States that includes any false or misleading statements regarding the Pallas lasers or STRATA’s lasers
The court order was issued following a joint stipulation by the parties and as a partial conclusion of STRATA’s motion for a preliminary injunction. STRATA will continue pursuing its claims for equitable and monetary relief from LaserOptek and other parties acting in concert with them.
STRATA President and CEO Dr. Dolev Rafaeli commented, “We are satisfied with this partial resolution of our preliminary injunction demands, as it saves both parties time and resources. We look forward to the outcome of the litigation, as we intend to vigorously defend users, patients and our own partner clinics from the damaging use of a non-excimer laser that seeks reimbursement under the CPT codes established over 20 years ago and re-affirmed for exclusive use of treatments with excimer lasers by the American Medical Association CPT board. The attempt by distributors and sellers of technologies that are neither clinically proven nor comparable to our XTRAC® excimer laser technology to mislead current and potential users, while making false technological and efficacy claims, puts providers at risk of an unethical use of the CPT codes. To protect the integrity of our products, intellectual property, and brand, as well as our clinical partners and the underlying healthcare system, we are compelled to take legal action in instances like this. In addition to the potential harm to patients and providers, it is STRATA’s opinion that the monetary and reputational damages incurred by STRATA from the defendants’ behavior is significant and continues to mount, and we will continue to pursue this legal course of action to address this.”
LaserOptek, a Korean company publicly traded on the KOSDAQ exchange, is the manufacturer of the Pallas line of solid-state laser medical devices, and Pinnacle was engaged by LaserOptek to provide advisory services regarding marketing of the Pallas lasers and reimbursement of psoriasis treatment procedures performed with Pallas lasers.
About STRATA Skin Sciences, Inc.
STRATA Skin Sciences is a medical technology company dedicated to developing, commercializing, and marketing innovative products for the in-office treatment of various dermatologic conditions, such as psoriasis, vitiligo, and acne. Its products include the XTRAC® excimer laser, VTRAC® lamp systems, and the TheraClear®X Acne Therapy System.
STRATA is proud to offer these exciting technologies in the U.S. through its unique Partnership Program. STRATA’s popular partnership approach includes a fee per treatment cost structure versus an equipment purchase, installation and use of the device, on-site training for practice personnel, service and maintenance of the equipment, dedicated account and customer service associates, and co-op advertising support to help raise awareness and promote the program within the practice.
Safe Harbor
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995. These statements include but are not limited to the Company’s plans, objectives, expectations and intentions and may contain words such as “will,” “may,” “seeks,” and “expects,” that suggest future events or trends. These statements, the Company’s ability to launch and sell products recently acquired or to be developed in the future, the Company’s ability to develop social media marketing campaigns, direct to consumer marketing campaigns, and the Company’s ability to build a leading franchise in dermatology and aesthetics, are based on the Company’s current expectations and are inherently subject to significant uncertainties and changes in circumstances. Actual results may differ materially from the Company’s expectations due to financial, economic, business, competitive, market, regulatory, adverse market conditions labor supply shortages, or supply chain interruptions resulting from fiscal, political factors, international conflicts, responses, or conditions affecting the Company, the medical device industry and our customers and patients in general, as well as more specific risks and uncertainties set forth in the Company’s SEC reports on Forms 10-Q and 10-K. Given such uncertainties, any or all these forward-looking statements may prove to be incorrect or unreliable. The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The Company urges investors to carefully review its SEC disclosures available at www.sec.gov and www.strataskinsciences.com.
Investor Contact:
CORE IR
516-222-2560
IR@strataskin.com
FAQ
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