The complaint, filed in the U.S. District Court for the District of New Jersey, alleges that Meltzer and Daniel violated Section 20(a) of the Securities Exchange Act. According to the filing, the executives touted operational improvements while allegedly ignoring unsustainable conditions at the company's Korean chip facility. The scrutiny intensified after an April 20, 2026 disclosure of a $17.5 million impairment charge, which triggered a 24.39% drop in Nano-X share prices.

At the heart of the case are Sarbanes-Oxley certifications signed by the defendants. Plaintiffs contend these filings were fundamentally flawed, asserting that the executives attested to the accuracy of financial reports despite internal knowledge of significant manufacturing misalignments. While the class period covers March 31, 2025, through April 17, 2026, attorney Joseph E. Levi noted that the firm is currently evaluating claims for shareholders who suffered losses during this window. The lawsuit seeks to hold the individual officers accountable for their oversight of public disclosures and internal control procedures.