Ekso Bionics Holdings, Inc.
- Company Name
- Ekso Bionics Holdings, Inc.
- Stock Symbol
- Class Period
- March 15, 2017 to December 27, 2017
- Motion Deadline
- March 3, 2018
- Eastern District of New York
The complaint charges Ekso and certain of its officers with violations of the Securities Exchange Act of 1934. Ekso designs, develops and sells exoskeletons for use in the healthcare, industrial, military and consumer markets in North America, Europe, the Middle East and Africa.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations, including that Ekso had a material weakness in its internal control over financial reporting, and accordingly, Ekso’s disclosure controls and procedures were not effective. As a result of this information being withheld from the market, Ekso securities traded at artificially inflated prices, with its stock price reaching a high of $4.10 per share during the Class Period.
On December 14, 2017, Ekso filed a current report on Form 8-K with the SEC advising investors that “the Company’s internal control over financial reporting as of December 31, 2016, should no longer be relied upon and that a material weakness in the Company’s internal control over financial reporting existed as of such date.” Specifically, Ekso stated that its announcement was due to a reevaluation of the Company’s information technology controls by the Company’s auditor. Ekso also 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 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.” On this news, Ekso’s share price fell $0.15 per share, or more than 6%, to close at $2.28 per share on December 15, 2017.
Then on December 27, 2017, after the market closed, Ekso filed an amended annual report for 2016 and amended quarterly reports for the first three quarters of 2017. On this news, Ekso’s share price fell $0.34 per share, or over 13%, to close at $2.23 per share on December 28, 2017.