NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court of New Jersey on behalf of those who acquired electroCore, Inc. (“electroCore” or the “Company”) (NASDAQ: ECOR) securities during the period from June 22, 2018 through September 25, 2019 (the “Class Period”) and/or pursuant or traceable to the Company’s June 2018 initial public offering (“IPO”). Investors have until November 25, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose a number of facts concerning its lead product, gammaCore, including that: (i) gammaCore did not possess any advantages over existing treatments making it unlikely to be adopted by doctors and patients; (ii) the Company’s voucher program was not effective to increase adoption of gammaCore; (iii) the Company lacked sufficient resources to successfully commercialize gammaCore; (iv) the Company’s product registry and efforts were ineffective to initiate reimbursement policies by commercial payors for gammaCore which would materially affect adoption and sales; and (v) that the Company lacked sufficient clinical data demonstrating that gammaCore was effective and safe for migraine prevention which made it unlikely that the Company’s 510(k) submission would be approved by the FDA.
In June of 2018, electroCore completed its IPO in which it sold 5.2 million shares at $15.00 per share. On May 14, 2019, the Company announced that its first quarter 2019 financial results fell short of investors’ expectations, reporting $410,000 in net sales and an operating loss of $14.2 million. On this news, electroCore’s share price fell $1.58, or 29.6%, to close at $3.75 per share on May 15, 2019.
Then, on September 25, 2019, the Company revealed that the FDA had requested more information and analysis of clinical data for electroCore’s 510(k) submission, which sought an expanded indication for the use of gammaCore as a migraine prevention treatment. On this news, electroCore’s share price fell $0.79, or 22.6%, to close at $2.57 per share on September 25, 2019.
By market close on September 26, 2019, electroCore stock was trading as low as $2.48 per share, an 83% decline from the $15 IPO price.
If you acquired electroCore securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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