NeuroMetrix’s Quell 2.0 [Image courtesy of NeuroMetrix]
The Federal Trade Commission announced that it is refunding NeuroMetrix (NSDQ:NURO) consumers nearly $3.9 million after false advertising.
NeuroMetrix marketed its Quell transcutaneous electrical nerve stimulation device as a clinically proven and FDA-cleared treatment for widespread chronic pain relief when placed below the knee, according to the FTC, which said that the company lacks scientific evidence to support the pain relief and clinical proof claims.
Waltham, Mass.-based NeuroMetrix and its CEO Shai Gozani agreed to pay $4 million to the FTC under an order settling the charges, supplying the money for refunds and agreeing to stop making the allegedly deceptive claims.
NeuroMetrix has been marketing the device since 2015 and last year turned to artificial intelligence to better tailor Quell treatments.
With the settlement funds from NeuroMetrix, the FTC is sending 2,144 refund checks and 67,998 refunds via PayPal, totaling 70,142 payments worth the nearly $3.9 million for consumers. The average refund amount is $55.10 per consumer.
Shares of NURO dipped down -2.5% at $1.56 per share in mid-afternoon trading today.