U.S. Court of Appeals Dismisses Securities Lawsuit Against ReWalk Robotics
August 27 2020 - 7:00AM
ReWalk Robotics, Ltd. (Nasdaq: RWLK) ("ReWalk" or the "Company"), a
leading manufacturer of robotic medical devices for individuals
with lower limb disabilities, today announced that the U.S. Court
of Appeals for the First Circuit dismissed a class action lawsuit
filed in 2017 against ReWalk.
The lawsuit alleged that ReWalk violated the Securities Act of
1933 (“Securities Act”) and Securities Exchange Act of 1934
(“Exchange Act”) by misrepresenting itself in the Company’s initial
public offering in September of 2014 and in public statements made
after its IPO.
In its decision, the Court of Appeals agreed with the U.S.
District Court decision, dismissing the Securities Act claims for
failure to state a claim. The lower court decision had found that
the plaintiffs did not have standing to bring the Exchange Act
claims. Although the appeals court disagreed on the standing issue,
it determined that no claim was stated against the Company for a
violation of the Exchange Act and the years-long case was
ultimately dismissed.
“Justice was served in the dismissal of this action, both in the
District and Appeals Courts,” said ReWalk CEO Larry Jasinski.
“These decisions are consistent with our expectations and that of
our counsel. Removal of this lingering concern allows the Company
to focus more effectively our energies on our commercial activities
of expanding reimbursement, helping more members of the disabled
community and in continuing to improve our financial position.”
Douglas Baumstein, partner at White and Case LLP, which represented
the Company in the litigation, stated that, “We are very pleased
with the court’s ruling, which vindicates our defense and
demonstrates that ReWalk made accurate disclosures to the
market.”
The U.S. Court of Appeals issued the decision on August 25,
2020.
About ReWalk Robotics Ltd. ReWalk Robotics
Ltd. develops, manufactures and markets wearable robotic
exoskeletons for individuals with lower limb disabilities as a
result of spinal cord injury or stroke. ReWalk's mission is to
fundamentally change the quality of life for individuals with lower
limb disability through the creation and development of market
leading robotic technologies. Founded in 2001, ReWalk has
headquarters in the United
States, Israel and Germany. For more information on
the ReWalk systems, please visit www.rewalk.com. ReWalk® is a
registered trademark of ReWalk Robotics Ltd. in Israel
and the United States. ReStore® is a registered trademark
of ReWalk Robotics Ltd. in Europe and an
allowed trademark in the United States.
Forward-Looking Statements In addition to
historical information, this press release contains forward-looking
statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, Section 27A of
the U.S. Securities Act of 1933, and Section 21E of
the U.S. Securities Exchange Act of 1934. Such
forward-looking statements may include projections regarding
ReWalk's future performance and other statements that are not
statements of historical fact and, in some cases, may be identified
by words like "anticipate," "assume," "believe," "continue,"
"could," "estimate," "expect," "intend," "may," "plan,"
"potential," "predict," "project," "future," "will," "should,"
"would," "seek" and similar terms or phrases. The forward-looking
statements contained in this press release are based on
management's current expectations, which are subject to
uncertainty, risks and changes in circumstances that are difficult
to predict and many of which are outside of ReWalk's control.
Important factors that could cause ReWalk's actual results to
differ materially from those indicated in the forward-looking
statements include, among others: possible further appeal of the
recently dismissed shareholder class action litigation relating to
its initial public offering; ReWalk's management's conclusion, and
its independent registered public accounting firm's statement in
its opinion relating to its consolidated financial statements for
the fiscal year ended December 31, 2019, that there is a
substantial doubt as to the Company's ability to continue as a
going concern; the current COVID-19 pandemic has adversely affected
and may continue to affect adversely business and results of
operations; ReWalk's ability to have sufficient funds to meet
certain future capital requirements, which could impair the
Company's efforts to develop and commercialize existing and new
products; ReWalk's ability to maintain compliance with the
continued listing requirements of the Nasdaq Capital Market and the
risk that its ordinary shares will be delisted if it cannot do so;
ReWalk's ability to establish a pathway to commercialize its
products in China; ReWalk's ability to maintain and grow its
reputation and the market acceptance of its products; ReWalk's
ability to achieve reimbursement from third-party payors for its
products; ReWalk's limited operating history and its ability to
leverage its sales, marketing and training infrastructure; ReWalk's
expectations as to its clinical research program and clinical
results; ReWalk's expectations regarding future growth, including
its ability to increase sales in its existing geographic markets
and expand to new markets; ReWalk's ability to obtain certain
components of its products from third-party suppliers and its
continued access to its product manufacturers; ReWalk's ability to
repay its secured indebtedness; ReWalk's ability to improve its
products and develop new products; ReWalk's compliance with medical
device reporting regulations to report adverse events involving the
Company's products, which could result in voluntary corrective
actions or enforcement actions such as mandatory recalls, and the
potential impact of such adverse events on ReWalk's ability to
market and sell its products; ReWalk's ability to gain and maintain
regulatory approvals; ReWalk's expectations as to the results of,
and the Food and Drug Administration's potential
regulatory developments with respect to its mandatory 522
postmarket surveillance study; ReWalk's ability to maintain
adequate protection of its intellectual property and to avoid
violation of the intellectual property rights of others; the risk
of a cybersecurity attack or breach of the Company's IT systems
significantly disrupting its business operations; the impact of
substantial sales of the Company's shares by certain shareholders
on the market price of the Company's ordinary shares; ReWalk's
ability to use effectively the proceeds of its offerings of
securities; the risk of substantial dilution resulting from the
periodic issuances of ReWalk's ordinary shares; the impact of the
market price of the Company's ordinary shares on the determination
of whether it is a passive foreign investment company; and other
factors discussed under the heading "Risk Factors" in ReWalk's
annual report on Form 10-K for the year ended December 31,
2019 filed with the SEC and other documents
subsequently filed with or furnished to the SEC. Any
forward-looking statement made in this press release speaks only as
of the date hereof. Factors or events that could cause ReWalk's
actual results to differ from the statements contained herein may
emerge from time to time, and it is not possible for ReWalk to
predict all of them. Except as required by law, ReWalk undertakes
no obligation to publicly update any forward-looking statements,
whether as a result of new information, future developments or
otherwise.
Media Relations:Jennifer Wlach E: media@rewalk.com Investor
Contact:Ori Gon Chief Financial Officer ReWalk Robotics Ltd.
T: +972-4-9590123 E: investorrelations@rewalk.com
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