Israeli’s Nano-X settles US SEC charges over costs of flagship imaging device
7:02 pm Friday, September 29th, 2023
NEW YORK (Reuters) – Nano-X Imaging 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)
