STRATA wins court ruling against LaserOptek in false advertising case

STRATA Skin Sciences Inc. (NASDAQ: SSKN) announced that a federal court ruling has strengthened its position in ongoing litigation against LaserOptek America Corp. and affiliated entities.

The U.S. District Court for the Eastern District of Pennsylvania issued a preliminary injunction on November 8, 2024, barring LaserOptek and The Pinnacle Health Group from marketing Pallas laser systems with claims that treatments are reimbursable under specific CPT codes 96920-96922. The court also prohibited defendants from making false statements about STRATA's excimer laser systems or their competing products.

In a subsequent decision, the court added LaserOptek Korea as a defendant, citing efforts by defendants to obscure their involvement in the case.

STRATA reported that over 20 former LaserOptek customers have since partnered with the company or purchased XTRAC excimer lasers, representing over $1 million in annualized capital and recurring revenue.

The company operates in a market of approximately 1,200 U.S. dermatology clinics that use excimer laser therapy for treating conditions such as psoriasis and vitiligo. As of June 30, 2025, 844 of these clinics participate in STRATA's partnership program.

STRATA noted that the American Medical Association CPT Board reaffirmed in May 2025 the exclusive use of excimer lasers under codes 96920-96922 through January 1, 2027. The company stated these codes will be expanded to include up to 30 dermatologic conditions.

"The Court's decision affirms our commitment to protect both our clinical partners and patients from misleading claims," said Dr. Dolev Rafaeli, STRATA's President and CEO.

STRATA develops and markets medical devices for treating dermatologic conditions including the XTRAC excimer laser, VTRAC lamp systems, and TheraClear X Acne Therapy System.

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