New York, New York--(Newsfile Corp. - November 21, 2019) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in electroCore, Inc. (NASDAQ: ECOR) ("electroCore" or the "Company") of the November 25, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in electroCore stock or options pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company's June 2018 initial public offering, and/or purchased or otherwise acquired electroCore securities between June 22, 2018 and September 25, 2019, inclusive and would like to discuss your legal rights, click here: www.faruqilaw.com/ECOR. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the District Court of New Jersey on behalf of all those who purchased electroCore securities pursuant and/or traceable to the registration statement and prospectus issued in connection with the Company's June 2018 initial public offering, and/or purchased or otherwise acquired electroCore securities between June 22, 2018 and September 25, 2019, inclusive. The case, Turnofsky v. electroCore, Inc., No. 19-cv-18400 was filed on September 26, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing 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.
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, electroCore's stock price fell from $5.33 per share on May 14, 2019 to $3.75 per share on May 15, 2019-a $1.58 or 29.64% drop.
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.
On this news, electroCore's stock price fell from $3.36 per share on September 24, 2019 to $2.57 per share on September 25, 2019-a $0.79 or 23.52% drop.
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 court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding electroCore's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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