The lawsuit, filed by SueWallSt on behalf of investors who purchased NNOX securities between March 31, 2025, and April 17, 2026, centers on a sudden $17.5 million impairment charge. On April 20, 2026, Nano-X announced the closure of its South Korean chip manufacturing facility and a pivot to outsourcing, a move that triggered a sharp decline in share value to $2.155.

Legal counsel for the plaintiffs, Joseph E. Levi, argues that Nano-X repeatedly characterized the Korean facility as a vital, productive asset in its SEC reports. Despite these claims, the complaint asserts the firm violated disclosure regulations by failing to report that production output was failing to meet market demand and that operating expenses were mounting. Investors seeking to participate as lead plaintiffs must meet the August 11, 2026, deadline, though the firm notes that class members are not required to provide testimony or pay upfront fees to seek recovery for losses.