Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the District of New Jersey captioned Turnofsky v. electroCore, Inc., et al., (Case No. 3:19-cv-18400), on behalf of persons and entities that: a) purchased or otherwise acquired electroCore, Inc. (NASDAQ: ECOR) (“electroCore” or the “Company”) 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 under Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”) and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in this action.
If you are a shareholder who suffered a loss, click here to participate.
In June 2018, electroCore completed its initial public offering (“IPO”) in which it sold 5.2 million shares of its common stock at $15.00 per share.
On May 14, 2019, the Company announced first quarter 2019 financial results that fell short of investors’ expectations, reporting $410,000 net sales and operating loss of $14.2 million.
On this news, the Company’s share price fell $1.58, nearly 29%, to close at $3.75 per share on May 15, 2019, thereby injuring investors.
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, over 23%, to close at $2.57 per share on September 25, 2019, thereby injuring investors further.
By the commencement of this action, electroCore stock was trading as low as $1.25 per share, a nearly 92% decline from the $15 per share IPO price.
The complaint filed in this class action alleges 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.
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If you purchased electroCore common stock pursuant to the Registration Statement and/or electroCore securities during the Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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