Sanara MedTech Faces Securities Fraud Probe After Tissue Health Plus Shutdown

Portnoy Law Firm investigates potential corporate wrongdoing after $31.2M loss from discontinued program.

Apr. 13, 2026 at 6:15pm

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A high-end, photorealistic studio still-life photograph featuring a stack of financial documents, a broken calculator, and a cracked mobile phone screen, conceptually representing the corporate strategy and finance issues surrounding the Sanara MedTech investigation.The sudden discontinuation of Sanara MedTech's Tissue Health Plus program and the resulting financial losses have triggered an investigation into potential corporate wrongdoing.Los Angeles Today

The Portnoy Law Firm has initiated an investigation into possible securities fraud by Sanara MedTech, Inc. (NASDAQ: SMTI) after the company's stock price plummeted 24.7% on November 12, 2025, following the discontinuation of its Tissue Health Plus (THP) program and the revelation of a $31.2 million net loss largely driven by a $26.5 million noncash asset impairment charge.

Why it matters

The sudden abandonment of a major business segment and the disclosure of massive write-downs triggered an immediate sell-off, potentially indicating corporate wrongdoing that harmed investors. The Portnoy Law Firm, known for recovering over $5.5 billion for aggrieved investors, is now investigating the case on behalf of Sanara MedTech shareholders.

The details

Sanara MedTech announced it was 'discontinuing operations' of its Tissue Health Plus (THP) program after market hours on November 11, 2025, stating the move was intended to 'reallocate resources to its core surgical business' and enhance 'operating efficiency.' However, the company's third quarter 2025 financial results released the next morning revealed a staggering 'net loss from discontinued operations' of $31.2 million, largely driven by a 'noncash asset impairment charge of $26.5 million' directly tied to the shuttering of the THP program.

  • On November 11, 2025, Sanara MedTech announced it was discontinuing its Tissue Health Plus (THP) program.
  • On November 12, 2025, Sanara MedTech's stock price plummeted 24.7% to $21.11 per share.

The players

Sanara MedTech, Inc.

A medical technology company that develops and markets wound care and surgical products.

The Portnoy Law Firm

A law firm that represents investors in pursuing claims caused by corporate wrongdoing, and has recovered over $5.5 billion for aggrieved investors.

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What they’re saying

“Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via https://portnoylaw.com/sanara-medtech-inc.”

— Lesley F. Portnoy, Attorney

What’s next

The Portnoy Law Firm will continue its investigation into possible securities fraud by Sanara MedTech and may file a class action lawsuit on behalf of investors.

The takeaway

This case highlights the potential risks for investors when a company suddenly abandons a major business segment, resulting in significant financial losses. The Portnoy Law Firm's investigation aims to determine if Sanara MedTech's actions constituted securities fraud that harmed shareholders.