Ra Medical Systems Sues Strata Skin Sciences for False, Misleading, and Disparaging Statements in Connection with Ra Medical’s Initial Public Offering

May 16, 2019 |

2 min read

Ra Medical alleges that the statements breached the non-disparagement provision of a prior settlement agreement to which Strata was expressly bound.

May 16, 2019 21:35 UTC

CARLSBAD, Calif.--(BUSINESS WIRE)-- Ra Medical Systems, Inc. (NYSE: RMED) filed a complaint today in the United States District Court for the Southern District of California alleging Mr. Uri Geiger, Chairman of Strata Skin Sciences, Inc. and managing partner of Accelmed (Strata’s majority stockholder), undertook a campaign of false, misleading, and disparaging statements to Ra Medical’s financial partners and potential investors before, during, and after Ra Medical’s initial public offering. Ra Medical believes these false statements constituted intentional interference with Ra Medical’s contractual relations and prospective economic relations, as well as trade libel. In addition, Ra Medical alleges that the statements breached the non-disparagement provision of a prior settlement agreement to which Strata was expressly bound.

Ra Medical supports innovation and competition in the medical device market. To that end, Ra Medical is focused on commercializing excimer laser systems to treat vascular and dermatological diseases. Strata’s actions did nothing to advance innovation or competition. Instead, they appear to be a deliberate attempt to derail Ra Medical’s mission by limiting our access to the capital markets, as well as by harming our brand and reputation. As a result, we believe that this lawsuit is necessary to protect our interests and those of our stockholders, our physician customers and their patients.

Ra Medical is seeking a declaration that Strata breached the settlement agreement, interfered with contractual relations and with prospective economic relations, and committed trade libel. Ra Medical is seeking monetary damages, including our costs and legal fees as provided by the settlement agreement, and such further relief which as court deems just and proper.

Cooley LLP is serving as legal counsel to Ra Medical in connection with this matter.

About Ra Medical Systems

Ra Medical Systems is a commercial medical device company developing and marketing innovative excimer laser systems for the treatment of vascular and dermatologic diseases. DABRA launched in 2017 for the endovascular treatment of blockages resulting from lower extremity vascular disease. Pharos launched in 2004 for the treatment of dermatological disorders including psoriasis, vitiligo, and atopic dermatitis. DABRA and Pharos are based on Ra Medical’s core excimer laser technology platform that produces 308 nanometer light, a UVB wavelength that studies have demonstrated increases T-cell apoptosis, or cell death, which may produce a beneficial, targeted immunosuppressive effect. Ra Medical manufactures DABRA and Pharos excimer lasers and catheters in a 32,000-square-foot facility located in Carlsbad, California. The vertically integrated facility is ISO 13485 certified and is licensed by the state of California to manufacture sterile, single-use catheters in controlled environments.