Nano-X Imaging Class Action Lawsuit – NNOX

Introduction

A securities class action lawsuit has been filed against Nano-X Imaging Ltd. (NASDAQ: NNOX) and two of its senior executives on behalf of investors who purchased Nano-X securities between March 31, 2025 and April 17, 2026. The complaint alleges that throughout this class period, defendants made materially false and misleading statements about Nano-X's operational efficiency, manufacturing capabilities, and demand for its products, while concealing that the company's production operations were poorly aligned with actual demand and generating unsustainable operating expenses and cash burn. The truth began to emerge on April 20, 2026, when Nano-X reported a fourth quarter net loss of $33.4 million, driven largely by a $17.5 million impairment charge tied to a restructuring initiative at its Korean chip manufacturing facility, and simultaneously announced the departure of its Chief Financial Officer. Following these disclosures, Nano-X's stock price fell $0.695 per share, or 24.39%, to close at $2.155 per share.

Company Profile

Nano-X Imaging Ltd. develops a commercial-grade tomographic imaging device with a digital X-ray source, known as the Nanox.ARC, and also provides teleradiology services and develops artificial intelligence applications for medical imaging. The company produces components for its X-ray products at self-owned facilities, including a micro-electro-mechanical systems (MEMs) chip manufacturing facility in South Korea, as well as through third-party manufacturers.

Class Period

March 31, 2025 – April 17, 2026

Investors who purchased or acquired Nano-X Imaging Ltd. (NNOX) securities during the Class Period may be eligible to seek recovery under the federal securities laws.

Allegations

The complaint alleges that Nano-X and its senior executives, CEO Erez Meltzer and CFO Ran Daniel, made materially false and misleading statements throughout the class period regarding the company's manufacturing efficiency, operational progress, and demand for its products. Beginning with the March 31, 2025 announcement of fourth quarter 2024 results, Defendant Meltzer publicly touted Nano-X's "accelerated . . . US commercialization effort," "operational progress in 2024," and confidence that the company was "well-positioned to build our momentum." In quarterly earnings calls and press releases over the following months, defendants repeatedly emphasized purported efficiency gains, a growing customer pipeline, disciplined execution, and the value of the company's manufacturing infrastructure, including its self-owned Korean chip fabrication facility.

According to the complaint, these statements were materially misleading because defendants overstated the efficiency gains achieved in Nano-X's operations and the demand for its products. In reality, the company's production and manufacturing operations were poorly aligned with actual demand, resulting in significantly increased operating expenses and cash burn. In the May 2025 earnings call, Defendant Meltzer claimed the sales pipeline had "doubled since January 2025" and projected over 100 Nanox.ARC systems in various stages of deployment by year-end 2025. In August 2025, defendants reported being "on track" to meet yearly deployment targets and described an "increasingly robust" commercial pipeline. By November 2025, Meltzer emphasized "a highly efficient and scalable manufacturing infrastructure" and the company's dedication to "accelerating" its development, while notably failing to disclose any disconnect between manufacturing operations and product demand, or any contemplated restructuring.

The complaint further alleges that, based on their executive roles, access to company information, and responsibility for public filings, Meltzer and Daniel knew or recklessly disregarded that the challenged statements were materially false or misleading. Throughout the class period, the Individual Defendants signed Sarbanes-Oxley certifications attesting that the company's SEC filings contained no material misstatements or omissions. Meanwhile, with Nano-X's stock price artificially inflated by these alleged misrepresentations, the company conducted a registered direct offering in November 2025, raising $15 million in gross proceeds from an institutional investor.

The Truth Emerges

On April 20, 2026, Nano-X issued a press release announcing its fourth quarter 2025 financial results, revealing a net loss of $33.4 million for the quarter, compared to $14.1 million in the same period a year earlier, an increase of $19.3 million. The loss was driven largely by a $17.5 million impairment charge related to long-lived assets following a restructuring initiative at the company's Korean chip manufacturing facility. The press release acknowledged that Nano-X needed to shift "to a more efficient outsourced production model that is better aligned with current and anticipated demand," a stark reversal from months of public assurances about operational efficiency and a disciplined growth strategy. The same announcement disclosed that CFO Ran Daniel would step down from his position, effective July 31, 2026.

During a conference call held the same day, CEO Meltzer provided further details, disclosing the need "to reduce our Korean operation's OpEx and cash burn and improve efficiency." The restructuring plan called for closing the chip manufacturing line in South Korea, downsizing fabrication facilities, and transferring production activities to third-party international partners, with total restructuring and related charges expected to reach approximately $18.0 million. The complaint alleges that these disclosures contradicted defendants' repeated class-period statements portraying Nano-X as executing a disciplined manufacturing scale-up aligned with growing demand.

Market Reaction

The market reacted swiftly and severely to the April 20, 2026 disclosures. Investor news outlet Seeking Alpha reported that morning that Nano-X shares had lost approximately 17% in early trading, noting it was "on track to what could be its worst intraday decline in over two years." By the close of trading on April 20, 2026, NNOX had fallen $0.695 per share, or 24.39%, to close at $2.155 per share. The following day, investment banking and research firm Ladenburg Thalmann lowered its price target on Nano-X shares to $9.60 from $10.60, citing the approximately $17.5 million impairment charge and the CFO transition.

Next Steps

●       Lead Plaintiff Deadline: August 11, 2026

●       After the lead plaintiff deadline, the Court will consider any lead plaintiff motions.

●       Defendants may file a motion to dismiss.

●       If the case proceeds, the Court may later consider class certification.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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