A law firm announced that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of investors who suffered losses in securities sold by Ekso Bionics Holdings, Richmond, California, between March 15, 2017, and December 27, 2017. The complaint, filed by Wolf Haldenstein Adler Freeman & Herz LLP, alleges that Ekso had a material weakness in its internal control over financial reporting, its disclosure controls and procedures were not effective, and as a result, its public statements were materially false and misleading.
On December 14, 2017, Ekso filed a current report on Form 8-K with the U.S. Securities and Exchange Commission 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.” Ekso said that the announcement was due to a reevaluation of its information technology controls and that it intended to amend its annual report for the fiscal year ended December 31, 2016, and quarterly reports for the periods ended March 31, 2017, June 30, 2017 and September 30, 2017. After the December announcement, Ekso’s share price fell by $0.15 (6.17 percent).
