electroCore, Inc. (NASDAQ: ECOR) Investor Securities Class Action Lawsuit 09/26/2019

If you purchased shares of electroCore, Inc. (NASDAQ: ECOR), you have certain options and for certain investors are short and strict deadlines running. Deadline: November 25, 2019. NASDAQ: ECOR investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
electroCore
Case Name: 
electroCore Shareholder Class Action Lawsuit 09/26/2019
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: ECOR
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/26/2019
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
11/25/2019
Summary: 

An investor in shares of electroCore, Inc. (NASDAQ: ECOR) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by electroCore, Inc. in connection with certain allegedly false and misleading statements made in connection with its initial public offering.

Basking Ridge, NJ based electroCore, Inc., a bioelectronic medicine company, engages in developing a range of patient-administered non-invasive vagus nerve (VNS) stimulation therapies for the treatment of various conditions in neurology, rheumatology, and other fields.
In June 2018, electroCore completed its initial public offering (“IPO”) in which it sold 5.2 million shares of its common stock at $15.00 per share.

electroCore, Inc. reported that its annual Total Revenue rose from $0.811 million in 2017 to $0.992 million in 2018 and that its Net Loss increased from $35.79 million in 2017 to $55.82 million in 2018.

On May 14, 2019, electroCore, Inc. announced its financial results for first quarter 2019.
Then, on September 25, 2019, electroCore, Inc 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.

According to the complaint the plaintiff alleges on behalf of purchasers of electroCore, Inc. (NASDAQ: ECOR) common shares, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the Defendants failed to disclose to investors that the Company’s lead product, gammaCore, did not enjoy any advantages over other acute treatments for migraines and episodic cluster headaches, that, as a result, doctors and patients were unlikely to adopt gammaCore over existing treatments, that the Company’s voucher program was not effective to increase adoption of gammaCore, that the Company lacked sufficient resources to successfully commercialize gammaCore, that the Company’s business plan and strategy was not sustainable because electroCore lacked sufficient revenue to be profitable, that the Company’s product registry and efforts were ineffective to initiate reimbursement policies by commercial payors for gammaCore, that the lack of reimbursement would materially impact adoption and sales of gammaCore, that the Company lacked sufficient clinical data demonstrating that gammaCore was effective and safe for migraine prevention, 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 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.