Benzinga | Oct 7, 2021 08:17AM EDT

ElectroCore Announces Acceptance Of Motion To Dismiss In Federal Court Securities Class Action Suit

electroCore, Inc. (NASDAQ:ECOR), a commercial-stage bioelectronic medicine company, announced the granting of the company's motion to dismiss the federal court securities class action case filed in Trenton, NJ. On August 13, 2021, New Jersey Federal District Court Judge Anne E. Thompson dismissed the investors' complaint alleging that statements made in the registration statement for the company's initial public offering in 2018, and public statements made subsequent to the company's 2018 IPO, were false and misleading in violation of federal securities laws. In a detailed opinion, Judge Thompson considered each of the plaintiffs' allegations of misrepresentations and omissions and held that the plaintiffs have not adequately presented arguments for any alleged untrue statements or that any allegedly omitted information rendered any factual statement untrue. Judge Thompson also found that the plaintiffs have failed to adequately allege that electroCore intended to mislead or omit information. In response, the plaintiffs filed an amended complaint on October 4, 2021.



This strong decision follows the dismissal with prejudice by a New Jersey trial court of a prior action alleging securities law violations in connection with the IPO. That dismissal is currently on appeal by the plaintiffs in the case and was argued before a three-judge panel of the Appellate Division of the New Jersey Superior Court on September 27, 2021.