STRATA Skin Sciences Announces That The U.S. District Court For The Eastern District Of Pennsylvania Expanded Its Injunction In STRATA's Favor Against LaserOptek And Its Affiliates, Prohibiting Them From Falsely Marketing Pallas Laser Systems As Reimbursable And From Making Misleading Claims About Strata's Products

Author: Benzinga Newsdesk | October 20, 2025 08:11am

STRATA Skin Sciences, Inc. ("STRATA" or the "Company") (NASDAQ:SSKN), a medical technology company dedicated to developing, commercializing, and marketing innovative products for the treatment of dermatologic conditions, today provided an update on its competitive positioning and ongoing litigation against LaserOptek America Corp., LaserOptek Co. Ltd. ("LaserOptek Korea"), and affiliated entities including The Pinnacle Health Group and C. Dalton International.



Court Recognizes STRATA's Position and Expands Accountability

As previously disclosed, on November 8, 2024, the U.S. District Court for the Eastern District of Pennsylvania issued an order partially granting STRATA's motion for preliminary injunction. The Court ruled in STRATA's favor, ordering that:

• LaserOptek and The Pinnacle Health Group — along with their employees, agents, distributors, and affiliates — are enjoined from any sales or marketing of Pallas laser systems in the United States that imply treatments are reimbursable under CPT Codes 96920–96922
• The defendants are also barred from making false or misleading statements regarding STRATA's excimer laser systems or their own competing products

In a subsequent decision, the Court also agreed with STRATA's position that LaserOptek Korea should be added as a defendant, citing efforts by the defendants to obscure their involvement. This ruling strengthens STRATA's ability to hold all responsible parties accountable for false advertising and unfair trade practices under the Lanham Act.



"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. "By exposing the deceptive tactics used to promote non-excimer lasers under CPT codes reserved for excimer technology, and offering a technology that has no known independent, peer-reviewed clinical validation for the treatment of Psoriasis, or (for that matter) any other inflammatory and autoimmune skin condition whether in or outside the U.S., we are defending not only our business but the ethical and medical standards of the dermatology community. We are happy to report that many dermatology accounts that were deceived with these false advertising claims are now XTRAC excimer laser users leading to our ability to retain and enhance our market share."

STRATA Regains Market Share and Strengthens Partner Network

Over the past few months, STRATA has successfully engaged multiple dermatology clinics that were previously misled by false claims about the Pallas solid-state laser's capabilities and reimbursement eligibility.



To date, over 20 such LaserOptek Pallas buyers have partnered with STRATA on XTRAC excimer laser technology under XTRAC partnership program or purchased XTRAC excimer lasers. These accounts represent over $1 million in annualized capital and recurring revenue, underscoring the resilience and trust in the XTRAC® Excimer Laser, recognized as the gold standard in targeted UVB therapy.

Expanding Leadership Ahead of New Indications

There are currently around 1,200 U.S. dermatology clinics that use excimer laser therapy for the treatment and subsequent ethical insurance billing of dermatologic autoimmune conditions such as psoriasis and vitiligo subject to CPT codes 96920 - 96922. All of these clinics are using either the XTRAC or Pharos devices – both are STRATA products. As of June 30, 2025, 844 of these clinics are using excimer laser technology under STRATA's partnership program.

The STRATA partnership program is suitable for individual dermatology clinic owners, as well as over 358 clinics that are owned by 43 unique private equity backed national accounts, presenting a potential expansion of over 2,000 additional clinics.

With the recent (May, 2025) American Medical Association CPT Board reaffirming the exclusive use of excimer lasers under codes 96920–96922 through January 1, 2027, STRATA is positioned to expand its leadership as these codes are broadened to include up to 30 dermatologic conditions expanding the available patient population four-fold to all 1,200 users of Excimer laser, allowing them to treat and ethically bill insurance under these codes.



"The CPT expansion marks a major growth inflection point for STRATA and our 844 partner clinics, as well as all other users of the excimer lasers," added Dr. Rafaeli. "We intend to aggressively defend our market share and ensure that the upcoming inclusion of 30 new indications translates into expanded access for patients and sustainable revenue for our partners, as we will be working with CMS and private payers alike to update their coverage policies."

 

Posted In: SSKN