Assure Neuromonitoring

Kurta Law is investigating recommendations of Assure Neuromonitoring stock for their potential unsuitability for investors. As disclosed in the company’s prospectus, investing in Assure Neuromonitoring involves substantial risks that may not be appropriate for all investors. Brokers have an obligation to recommend investments that suit investors’ risk profiles under FINRA Rule 2111 and Regulation Best Interest.

If you lost money on your investment in Assure Neuromonitoring, consider contacting a securities attorney. You may be able to recover your losses through FINRA arbitration, which is designed to be a cheaper and faster approach than civil court. Contact us at (877) 600-0098 or email info@kurtalawfirm.com to speak to one of our securities attorneys for free today.

What is Assure Neuromonitoring?

According to the prospectus, Assure Neuromonitoring (IONM) is a corporation that provides remote neurology services and intraoperative neurophysiological monitoring (also abbreviated as IONM) to medical facilities conducting surgeries that “place the nervous system at risk.” This includes neurosurgery as well as surgeries involving the spine and cardiovascular system.

More specifically, Assure Neuromonitoring provides teams of Interoperative Neurophysiologists to assist surgical teams during procedures as well as remote supervision by trained practitioners.

Department of Justice Investigation

In 2022, the Department of Justice conducted an investigation into Assure Holdings Corp. regarding alleged violations of the False Claims Act, Civil Monetary Penalties Law, the Anti-Kickback Statute, and the Program Fraud Civil Remedies Act.

These allegations concerned “payment by mistake, unjust enrichment, and fraud” with regard to the improper submission of claims to Medicare Advantage plans managed by commercial insurance companies.

On February 7, 2024, Assure Holdings Corp. paid approximately $1 million in a settlement agreement reached with the DOJ.

What are the Risks Associated with Assure Neuromonitoring?

Assure Neuromonitoring’s prospectus states that purchasing their stock comes with some significant risks, including a potential reduction in share value and the unpredictable impacts of federal tax laws.

Notably, the prospectus notes that Assure Neuromonitoring’s management will have “broad discretion” in using the proceeds from this offering, that investors may disagree with these decisions, and that these decisions may not be profitable.

Potential Loss of Share Value

According to the prospectus, investors will experience “immediate and substantial dilution” of their shares due to the price of the common stock being “substantially higher than [its] net tangible book value.”

Assure also states that it may issue additional shares, or securities that may be converted into or exchanged for shares, that may further this dilution.

Impact of the Inflation Reduction Act of 2022

Assure warns in its prospectus that proposed changes to state and federal tax laws may impact the company’s financial prospects and the value of stockholders’ shares.

In particular, they identify the Inflation Reduction Act of 2022 as a law potentially affecting the company’s tax obligations. The Act contains provisions concerning the taxation of corporations’ income and corporate stock repurchases.

However, the prospectus states that Assure Neuromonitoring “cannot predict how this legislation or any future changes in tax laws might affect” their finances or their stock.

Aegis Capital Corp. Underwriting

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm. 

What Can I Do If I Suffered Losses?

If you lost money on your investment in Assure Neuromonitoring, our experienced securities attorneys may be able to help. Kurta Law attorneys have experience taking on cases of unsuitable investment recommendations and broker misconduct. Call (877) 600-0098 or email info@kurtalawfirm.com.