electroCore Announces Dismissal of All Litigation Related to Its 2018 Initial Public Offering
August 23 2023 - 8:00AM
electroCore, Inc. (Nasdaq: ECOR), a commercial-stage bioelectronic
and wellness company, today announced that it has been completely
vindicated in the securities class actions over the company’s 2018
initial public offering brought in the federal and state courts of
New Jersey. The litigation has concluded without any finding of
wrongdoing or liability, nor any payment, by electroCore.
On July 13, 2023, District Judge Zahid N. Quraishi of the United
States District for the District of New Jersey, dismissed the
second amended class action complaint alleging violations of the
Securities Act and the Securities Exchange Act. In a detailed
opinion, Judge Quraishi considered each of the plaintiff’s
allegations of misrepresentations and omissions in the prospectus
for the IPO and in other public statements and filings in 2018-19
and held the plaintiff has not adequately pleaded any alleged
untrue statement or that any allegedly omitted information rendered
any factual statement untrue. Judge Quraishi also found that the
plaintiff failed to adequately allege that electroCore intended to
mislead or omit information. Judge Quraishi permitted the plaintiff
thirty days to try to amend their complaint for a third time but
warned that “while the Plaintiff can change the words of the
Complaint, Plaintiff cannot change the words of the Prospectus.”
Judge Quraishi’s dismissal followed the prior dismissal of the
first amended complaint, also in a detailed opinion assessing each
of plaintiff’s allegations, by District Judge Anne E. Thompson, on
August 13, 2021.
The plaintiff decided not to amend their complaint a third time
and did not appeal the District Court’s ruling within the required
time. Thus, the federal court litigation is over. This follows the
termination earlier this year of litigation over the IPO and
electroCore’s statements initiated in 2019 in the Somerset County,
New Jersey Superior Court. That case was twice dismissed with
prejudice, and on May 15, 2023, the Appellate Division of the New
Jersey Superior Court unanimously affirmed the dismissal with
prejudice. The time for further appeals in that case also has
expired.
Thus, the litigation over the initial public offering has been
brought to a close with a complete vindication of electroCore, its
directors and its management in their handling of the 2018 IPO.
About electroCore, Inc.
electroCore, Inc. is a commercial stage bioelectronic medicine
and wellness company dedicated to improving health through its
non-invasive vagus nerve stimulation (“nVNS”) technology platform.
The Company’s focus is the commercialization of medical devices for
the management and treatment of certain medical conditions and
consumer product offerings utilizing nVNS to promote general
wellbeing and human performance in the United States and select
overseas markets.
For more information, visit www.electrocore.com.
Forward-Looking Statements
This press release and other written and oral statements made by
representatives of electroCore may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include, but
are not limited to, statements about the electroCore’s business
prospects and clinical and product development plans; its pipeline
or potential markets for its technologies; the timing, outcome and
impact of regulatory, clinical and commercial developments;
business prospects around its wellness and human performance
offerings and other new products and markets, and other statements
that are not historical in nature, particularly those that utilize
terminology such as "anticipates," "will," "expects," "believes,"
"intends," and other words of similar meaning, derivations of such
words and the use of future dates. Actual results could differ from
those projected in any forward-looking statements due to numerous
factors. Such factors include, among others, the ability to raise
the additional funding needed to continue to pursue electroCore’s
business and product development plans, the inherent uncertainties
associated with developing new products or technologies, the
ability to commercialize gammaCore™, TAC-STIM™, and Truvaga™, the
potential impact and effects of COVID-19 on the business of
electroCore, electroCore’s results of operations and financial
performance, inflation and currency fluctuations, and any measures
electroCore has and may take in response to COVID-19 and any
expectations electroCore may have with respect thereto, competition
in the industry in which electroCore operates and overall economic
and market conditions. Any forward-looking statements are made as
of the date of this press release, and electroCore assumes no
obligation to update the forward-looking statements or to update
the reasons why actual results could differ from those projected in
the forward-looking statements, except as required by law.
Investors should consult all of the information set forth herein
and should also refer to the risk factor disclosure set forth in
the reports and other documents electroCore files with the SEC
available at www.sec.gov.
Contact:
ECOR Investor Relations (973)
302-9253 investors@electrocore.com
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