According to the Complaint, Nano-X Imaging Ltd. is a development-stage company that develops, produces, and commercializes digital X-ray source technology for the medical imaging industry worldwide. The Company is developing a purportedly new, affordable, medical imaging system, which Nano-X refers to as its “Nanox System”. The Nanox System has two integrated components—a hardware component called the “Nanox.ARC”, and a software component called the “Nanox.CLOUD”. The Nanox.ARC purportedly uses a novel X-ray source, also developed by the Company.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational, and compliance policies. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) Nano-X’s commercial agreements and its customers were fabricated; (ii) Nano-X’s statements regarding its “novel” Nanox System were misleading as the Company never provided data comparing its images with images from competitors’ machines; (iii) Nano-X’s submission to the U.S. Food and Drug Administration (“FDA”) admitted the Nanox System was not original; and (iv) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.

On January 25, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on April 12. Lead Plaintiff voluntarily dismissed one of the individual Defendants on April 20, 2022.

On June 2, 2023, the parties entered into a Stipulation of Settlement. On June 6, the Court denied Defendants' Motion to Dismiss in light of the Settlement. The Court granted preliminary approval of the Settlement on October 31.