On September 8, 2016, Spruce Point Capital Management published a report (the "Spruce Point Report") asserting that Echo's stock is significantly overvalued. Among other issues, the Spruce Point Report stated that Echo has overstated its purported "proprietary technology advantages," that Echo's recent headquarter lease expansion placed Echo in violation of a debt covenant, and that "rampant accounting and financial concerns" are "evident."
On this news, Echo stock has fallen as much as $2.19, or 8.22%, during intraday trading on September 8, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Florida, 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
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SOURCE Pomerantz LLP