Ekso Bionics Class Action – Federal Securities Lawsuit Filed Against Richmond, CA-Based Ekso
Ekso Bionics Class Action on Behalf of Purchasers or Acquirers of Ekso Bionics Holdings, Inc. Common Shares
On January 10, 2018, a federal class action lawsuit was filed in United States District Court (Cheehy v. Ekso Bionics Holdings, Inc. et al) against Ekso Bionics Holdings, Inc. on behalf of a class of purchasers or acquirers of the common shares of Ekso between March 15, 2017 and December 27, 2017, both dates inclusive (the “Class Period”).
The Ekso Bionics class action seeks to recover damages for Ekso (NASDAQ:EKSO) shareholders as a result of Ekso Bionics’s violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Ekso Bionics Holdings, Inc. is a Northern California-based company and an alleged “worldwide pioneer in the field of robotic exoskeletons” which is “committed to developing the latest technology and engineering to help people rethink current physical limitations and achieve the remarkable.” Ekso’s “products unlock human strength, endurance, and mobility potential, with broad applications across medical and industrial markets.”
Ekso Bionics Class Action – Alleged False and Misleading Statements & Material Weakness in Internal Control
According to the Cheehy v. Ekso Bionics Holdings, Inc. et al class action complaint:
Throughout the Class Period, [Ekso Bionics] Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Ekso had a material weakness in its internal control over financial reporting; (ii) accordingly, Ekso’s disclosure controls and procedures were not effective; and (iii) as a result of the foregoing, Ekso’s public statements were materially false and misleading at all relevant times.
On December 14, 2017, Ekso filed a current report on Form 8-K with the SEC, advising investors that ‘[Ekso’s] internal control over financial reporting as of December 31, 2016 should no longer be relied upon and that a material weakness in [Ekso’s] internal control over financial reporting existed as of such date.’ Specifically, Ekso stated that its announcement was due to a reevaluation of [Ekso’s] information technology (“IT”) controls by OUM & Co. LLP (“OUM”), [Ekso’s] auditor. Ekso stated that it intended ‘to amend [its] Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and [its] Quarterly Reports on Form 10-Q for the periods ended March 31, 2017, June 30, 2017 and September 30, 2017 to reflect the conclusion by [Ekso] management that there was a material weakness in internal control over financial reporting and that [Ekso’s] disclosure controls and procedures were not effective as of the end of the periods covered by these reports.’
Ekso Share Price Falls on News of Material Weakness in Internal Control Over Financial Reporting
According to the Ekso class action securities complaint, Ekso’s share price, on the news regarding Ekso’s material weakness in Ekso’s internal control over financial reporting, fell $0.15, or 6.17%, to close at $2.28 on December 15, 2017.
Ekso Share Price Falls After Ekso Files Amended Annual & Quarterly Reports
According to the Ekso class action securities complaint, post-market, on December 27, 2017, Ekso’s share price, on the news that Ekso filed an amended annual report for 2016 and amended quarterly reports for the first three quarters of 2017 on Form 10-Q fell $0.34, or over 13%, to close at $2.23 on December 28, 2017.
Ekso Bionics Shareholders Who Have Suffered Losses
If you purchased, or otherwise acquired, the common stock of Ekso Bionics Holdings, Inc. Ekso between March 15, 2017 and December 27, 2017, both dates inclusive, and have questions or concerns about your legal rights or potential legal claims, please contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].