The legal action, initiated by the firm Levi & Korsinsky, LLP, covers investors who purchased NNOX securities between March 31, 2025, and April 17, 2026. According to the complaint, management repeatedly touted a robust pipeline and an optimized manufacturing infrastructure throughout 2025, even as internal operations faced rising costs and misalignment with actual market demand.

The discrepancy surfaced when Nano-X disclosed a $33.4 million net loss for the fourth quarter of 2025, a figure heavily influenced by a $17.5 million impairment of long-lived assets. The company subsequently announced the closure of its Korean chip factory and a strategic pivot to outsourced production. This revelation arrived only months after management claimed the facility was meeting all anticipated needs, leading to a single-session stock decline that erased nearly a quarter of the company’s market value.

Joseph E. Levi, Esq., noted that the complaint highlights a fundamental gap between public representations of disciplined execution and the reality of an unsustainable cost structure. Of particular concern to plaintiffs is a $15 million registered direct offering conducted in November 2025, which occurred shortly before the scope of the operational failures became public. Investors seeking to participate in the class action have until August 11, 2026, to meet the lead plaintiff deadline.