NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all investors that purchased electroCore, Inc. (NASDAQ: ECOR) securities between June 22, 2018 and September 25, 2019 (“the “Class Period”) and/or pursuant or traceable the company’s June 2018 initial public offering (“IPO”). Investors have until November 25, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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In June of 2018, electroCore completed its initial public offering (“IPO”) in which it sold 5.2 million shares at $15.00 per share. On May 14, 2019, the company announced that its first quarter 2019 financial results fell short of investors’ expectations, reporting $410,000 in net sales and an operating loss of $14.2 million.
On this news, the company’s share price fell $1.58, or nearly 29%, to close at $3.75 per share on May 15, 2019.
Then, on September 25, 2019, the company revealed that the U.S. Food and Drug Administration requested more information and analysis of clinical data for electroCore’s 510(k) submission, which seeks an expanded indication for the use of gammaCore, the Company’s treatment for pain associated with episodic cluster headache.
On this news, the company’s share price fell $0.79, or over 23%, to close at $2.57 per share on September 25, 2019.
By market close on September 26, 2019, electroCore stock was trading as low as $2.48 per share, an 83% decline from the $15 per share IPO price.
The complaint, filed on September 26, 2019 alleges that throughout the class period and following the IPO defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants failed to disclose to investors: (1) that the company’s lead product, gammaCore, did not enjoy any advantages over other acute treatments for migraines and episodic cluster headaches; (2) that, as a result, doctors and patients were unlikely to adopt gammaCore over existing treatments; (3) that the company’s voucher program was not effective to increase adoption of gammaCore; (4) that the company lacked sufficient resources to successfully commercialize gammaCore; (5) that the company’s business plan and strategy was not sustainable because electroCore lacked sufficient revenue to be profitable; (6) that the company’s product registry and efforts were ineffective to initiate reimbursement policies by commercial payors for gammaCore; (7) that the lack of reimbursement would materially impact adoption and sales of gammaCore; (8) that the company lacked sufficient clinical data demonstrating that gammaCore was effective and safe for migraine prevention; (9) that, as a result, the company’s 510(k) submission for the use of gammaCore for migraine prevention was unlikely to be approved by the FDA; and (10) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased electroCore securities during the Class Period and/or pursuant to the IPO, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the electroCore lawsuit, please go to https://bespc.com/ecor. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.