ROCKAWAY, N.J., Aug. 23, 2023 (GLOBE NEWSWIRE) — 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.
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.
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