NEW YORK, Nov. 23, 2019 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against electroCore, Inc. (“electroCore” or the “Company”) (NASDAQ: ECOR) and certain of its officers. The class action, filed in United States District Court, for the District of New Jersey, and indexed under 19-cv-19653, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired electroCore common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s June 2018 initial public offering (“IPO” or the “Offering”); and/or b) purchased or otherwise acquired electroCore securities between June 22, 2018 and September 25, 2019, inclusive (the “Class Period”). Plaintiff pursues claims against the Defendants under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased electroCore common stock pursuant and/or traceable to the Registration Statement issued in connection with the Company’s June 2018 IPO or during the Class Period, you have until November 25, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
electroCore is a bioelectronic medicine company with a non-invasive vagus nerve stimulation (“VNS”) therapy. Its lead product gammaCore is used for the acute treatment of pain associated with migraine and episodic cluster headache in adults.
On June 25, 2018, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold 5,980,000 shares of common stock at a price of $15.00 per share. The Company received proceeds of approximately $79.5 million from the Offering, net of underwriting discounts and commissions. The proceeds from the IPO were purportedly to be used to commercialize gammaCore products, expand its clinical program into additional indications in headache and rheumatology, build its specialty distribution channel for the anticipated launch of gammaCore Sapphire, and for working capital and other corporate purposes.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) that the Company’s lead product, gammaCore, did not enjoy any advantages over other acute treatments for migraines and episodic cluster headaches; (ii) that, as a result, doctors and patients were unlikely to adopt gammaCore over existing treatments; (iii) that the Company’s voucher program was not effective to increase adoption of gammaCore; (iv) that the Company lacked sufficient resources to successfully commercialize gammaCore; (v) that the Company’s business plan and strategy was not sustainable because electroCore lacked sufficient revenue to be profitable; (vi) that the Company’s product registry and efforts were ineffective to initiate reimbursement policies by commercial payors for gammaCore; (vii) that the lack of reimbursement would materially impact adoption and sales of gammaCore; (viii) that the Company lacked sufficient clinical data demonstrating that gammaCore was effective and safe for migraine prevention; (ix) 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 (x) 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.
On May 14, 2019, electroCore announced first quarter 2019 financial results that fell short of investors’ expectations, reporting $410,000 net sales and an operating loss of $14.2 million.
On this news, electroCore’s share price fell $1.58 per share, or nearly 30%, to close at $3.75 per share on May 15, 2019, on unusually heavy trading volume.
On September 25, 2019, electroCore revealed that the U.S. Food and Drug Administration (“FDA”) requested more information and analysis of clinical data for electroCore’s 510(k) submission, which seeks an expanded indication for the use of gammaCore.
On this news, electroCore’s share price fell $0.79 per share, or over 23%, to close at $2.57 per share on September 25, 2019, on unusually heavy trading volume.
By the commencement of this action, electroCore’s shares continue to trade significantly below the IPO price of $15.00 per share. As a result, investors were damaged.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby