NEW YORK, Oct. 1, 2019 /PRNewswire/ -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of shareholders of electroCore, Inc. ("electroCore" or the "Company") (NASDAQ: ECOR) between June 19, 2018, and September 25, 2019, inclusive (the "Class Period"). The lawsuit filed in the United States District Court for the District of New Jersey seeks to recover damages for electroCore investors under the Securities Act of 1933 and the Securities Exchange Act of 1934.
If you purchased electroCore securities, and/or would like to discuss your legal rights and options please visit electroCore Shareholder Class Action or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
If you wish to serve as lead plaintiff, you must move the Court no later than November 25, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
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 purchased electroCore securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/electrocoreincorporated-ecor-shareholder-class-action-lawsuit-stock-fraud-192/apply or contact Matthew E. Guarnero toll free at (877) 779-1414 or MGuarnero@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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