35.  This is a class action on behalf of those who purchased or otherwise acquired  Psychemedics common stock between July 26, 2016 and January 31, 2017, inclusive, excluding  Defendants (the “Class”).  Excluded from the Class are officers and directors of the Company as  well as their families and the families of the Defendants.  Class members are so numerous that  joinder of them is impracticable.   36.  Common questions of law and fact predominate and include whether Defendants:  (a) violated the Exchange Act; (b) omitted and/or misrepresented material facts; (c) knew or  recklessly disregarded that their statements were false; (d) artificially inflated the price of  Psychemedics common stock; and (e) the extent of and appropriate measure of damages.   37.  Plaintiff’s claims are typical of those of the Class.  Prosecution of individual actions  would create a risk of inconsistent adjudications.  Plaintiff will adequately protect the interests of  the Class.  A class action is superior to other available methods for the fair and efficient  adjudication of this controversy.  38.  Plaintiff repeats and realleges the above paragraphs as though fully set forth herein.   40.  During the Class Period, Defendants Psychemedics and the Individual Defendants,  and each of them, carried out a plan, scheme, and course of conduct using the instrumentalities of  interstate commerce and the mails, which was intended to and, throughout the Class Period did:  (a) artificially inflate and maintain the market price of Psychemedics common stock; (b) deceive  the investing public, including Plaintiff and other Class members, as alleged herein; (c) cause  Plaintiff and other members of the Class to purchase Psychemedics common stock at inflated  prices; and (d) cause them losses when the truth was revealed.  In furtherance of this unlawful  scheme, plan and course of conduct, Defendants Psychemedics and the Individual Defendants, and  each of them, took the actions set forth herein, in violation of §10(b) of the Exchange Act and Rule  10b-5, 17 C.F.R. §240.10b-5.  All Defendants are sued either as primary participants in the  wrongful and illegal conduct charged herein or as controlling persons as alleged below.   41.  In addition to the duties of full disclosure imposed on Defendants Psychemedics  and the Individual Defendants as a result of their affirmative false and misleading statements to  the investing public, these Defendants had a duty to promptly disseminate truthful information  with respect to Psychemedics’s operations and performance that would be material to investors in  compliance with the integrated disclosure provisions of the SEC, including with respect to the  Company’s revenue and earnings trends, so that the market price of the Company’s securities  would be based on truthful, complete and accurate information.  SEC Regulations S-X (17 C.F.R.  §210.01, et seq.) and S-K (17 C.F.R. §229.10, et seq.).   43.  As a result of the dissemination of the materially false and misleading information  and failure to disclose material facts as set forth above, the market price of Psychemedics common  stock was artificially inflated during the Class Period.  In ignorance of the fact that the market  price of Psychemedics common stock was artificially inflated, and relying directly or indirectly on  the false and misleading statements made knowingly or with deliberate recklessness by Defendants  Psychemedics and the Individual Defendants, or upon the integrity of the market in which the  shares traded, Plaintiff and other members of the Class purchased Psychemedics stock during the  Class Period at artificially high prices and, when the truth was revealed, were damaged thereby.   44.  Had Plaintiff and the other members of the Class and the marketplace known of the  true facts, which were knowingly or recklessly concealed by Defendants Psychemedics and the  Individual Defendants, Plaintiff and the other members of the Class would not have purchased or  otherwise acquired their Psychemedics shares during the Class Period, or if they had acquired such  shares during the Class Period, they would not have done so at the artificially inflated prices which  they paid.   45.  By virtue of the foregoing, Defendants Psychemedics and the Individual  Defendants have violated §10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder.  17  46.  Plaintiff repeats and realleges the above paragraphs as though fully set forth herein.   48.  In particular, the Individual Defendants had direct involvement in and  responsibility over the day-to-day operations of the Company and, therefore, are presumed to have  had the power to control or influence the particular transactions giving rise to the securities  violations as alleged herein.   49.  By reason of such wrongful conduct, each of the Individual Defendants is liable  pursuant to §20(a) of the Exchange Act.  As a direct and proximate result of the Individual  Defendants’ wrongful conduct, Plaintiff and the other members of the Class suffered damages in  connection with their purchases of the Company’s common stock during the Class Period.  For Violation of Section 10(B) of the Exchange Act  and Rule 10b-5 Against All Defendants   For Violation of §20(a) of the Exchange Act  Against the Individual Defendants  