Israeli's Nano-X settles US SEC charges over costs of flagship imaging device (updated)

Nano-X Imaging

29/09/2023 23:08

(Recasts to add settlement details)
       NEW YORK, Sept 29 (Reuters) - Nano-X Imaging  NNOX.O 
and its founder Ran Poliakine agreed to pay nearly $1.1 million
to settle U.S. Securities and Exchange Commission charges
accusing the Israeli medical imaging company of negligently
misleading investors about the cost to make its flagship
product.
    Poliakine was accused of claiming in 2020 and 2021 that
Nano-X could mass-produce Nanox.ARC, purportedly a lower-cost
alternative to existing X-ray devices, for $8,000 to $12,000
each, while ignoring higher estimates provided by company
executives, including engineering executives.
        The SEC said Nano-X also touted the misleadingly low
estimate before and after its August 2020 initial public
offering, which raised $165 million.
  
        Poliakine was Nano-X's chief executive at the time of
the misleading statements, and is now non-executive chairman,
the SEC said.
  
        Without admitting or denying wrongdoing, Nano-X and
Poliakine agreed to pay respective civil fines of $650,000 and
$150,000, and Poliakine will pay $267,000 in disgorgement plus
interest.
  
        Nano-X declined additional comment.
  
        
  

 (Reporting by Jonathan Stempel in New York
Editing by Chris Reese)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))