electroCore, Inc. (Nasdaq: ECOR)
A class action has been filed in the United States District Court for the District of New Jersey on behalf of purchasers of electroCore, Inc. (Nasdaq: ECOR) securities during the period between June 19, 2018, and September 25, 2019, (the “Class Period”).
The complaint alleges that throughout the Class Period, 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.
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.
If you are a current shareholder and/or purchased stock during the period between June 19, 2018, and September 25, 2019, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.