Pro-Dex Inc PDEX Faces Securities Investigation Over Potential Investor Concerns

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Pro-Dex Inc (PDEX).

If you purchased or held Pro-Dex securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Pro-Dex

Pro-Dex is a publicly traded company that designs and manufactures powered surgical instruments and related products. The company is known for providing solutions for the medical device and dental industries, with a focus on precision engineering and contract manufacturing.

Headquartered in Irvine, California, Pro-Dex has reported steady growth in recent years, often highlighting strong sales and production capabilities in its financial communications. The company’s leadership has emphasized its commitment to quality and innovation, which has helped it maintain a presence in its specialized markets.

Potential Concerns Under Investigation

Lawyers are currently investigating whether Pro-Dex may have made materially misleading statements or omitted important information regarding its financial controls and inventory valuation. The investigation focuses on disclosures made between Oct. 31, 2024, and Aug. 8, 2025, a period during which investors may have relied on the company’s public statements about its financial health and internal controls.

A key event under review is the company’s announcement on Aug. 11, 2025, when Pro-Dex disclosed through an SEC Form 8-K that its earlier FY2025 interim financial statements could “no longer be relied upon” due to inventory-valuation errors tied to a material internal-control weakness. This admission led to a sharp 16.44% decline in Pro-Dex’s stock price in a single day, erasing tens of millions of dollars in market value. Notably, there was no other major news or market-wide shock at the time, suggesting the losses were directly tied to this company-specific disclosure (www.streetinsider.com).

The investigation may also examine statements made in Pro-Dex’s quarterly and annual filings. For example, the Q1 FY2025 results announced on Oct. 31, 2024, touted strong sales growth and earnings, with no indication of inventory problems. However, in subsequent filings for Q2 and Q3 FY2025, Pro-Dex acknowledged a “material weakness… relating to controls related to the existence of inventory,” but still asserted that inventory was “accurately recorded and properly valued” (www.sec.gov). The later restatement appears to contradict these assurances, indicating that the inventory was not properly valued and that financial results for the period were incorrect.

Another area of focus is the company’s June 30, 2024, Form 10-K, where management disclosed the existence of internal-control weaknesses but claimed that these “did not result in any material misstatement in our financial statements.” The subsequent restatement suggests this representation may not have been accurate (www.sec.gov). Legal professionals may review whether shareholders were adequately informed about the severity and impact of these control issues.

Public statements from Pro-Dex executives are also under scrutiny. For example, CEO Richard Van Kirk made optimistic comments about the company’s performance and outlook in press releases and earnings calls, without mentioning the known inventory-control issue (investor.wedbush.com). The Jan. 30, 2025, Q2 press release similarly highlighted production and backlog growth, omitting any disclosure about potential misstatements in inventory.

The investigation may also look at whether Pro-Dex’s internal remediation efforts were effective. Despite management’s repeated statements that inventory was accurately recorded, the eventual restatement suggests that remediation was unsuccessful and that prior results were unreliable (www.streetinsider.com).

Your Rights and Next Steps

Investors who purchased or held Pro-Dex securities and suffered financial losses may have options to recover their losses. This is currently an investigation, not a filed lawsuit, but it may lead to a class action if sufficient evidence of securities law violations is found.

It is important for investors to act promptly, as securities investigations are time-sensitive. Preserving records of Pro-Dex stock purchases, sales, and account statements can be helpful in evaluating eligibility and potential recovery.

You May Be Entitled to Compensation

If you purchased or held Pro-Dex securities and experienced losses, you may be eligible to join this investigation and pursue compensation. Securities investigations move quickly, and acting soon can help protect your rights.

To learn more and see if you qualify, complete the form below to join the investigation.