Still no movement with recent 8-K.
U.S. Court of Appeals Dismisses Securities Lawsuit Against ReWalk Robotics
MARLBOROUGH, Mass. BERLIN, Germany and YOKNEAM ILIT, Israel, August 27, 2020— ReWalk Robotics, Ltd. (Nasdaq: RWLK) ("ReWalk" or the "Company"), a leading manufacturer of robotic medical devices for individuals with lower limb disabilities, today announced that the U.S. Court of Appeals for the First Circuit dismissed a class action lawsuit filed in 2017 against ReWalk.
The lawsuit alleged that ReWalk violated the Securities Act of 1933 (“Securities Act”) and Securities Exchange Act of 1934 (“Exchange Act”) by misrepresenting itself in the Company’s initial public offering in September of 2014 and in public statements made after its IPO.
In its decision, the Court of Appeals agreed with the U.S. District Court decision, dismissing the Securities Act claims for failure to state a claim. The lower court decision had found that the plaintiffs did not have standing to bring the Exchange Act claims. Although the appeals court disagreed on the standing issue, it determined that no claim was stated against the Company for a violation of the Exchange Act and the years-long case was ultimately dismissed.
“Justice was served in the dismissal of this action, both in the District and Appeals Courts,” said ReWalk CEO Larry Jasinski. “These decisions are consistent with our expectations and that of our counsel. Removal of this lingering concern allows the Company to focus more effectively our energies on our commercial activities of expanding reimbursement, helping more members of the disabled community and in continuing to improve our financial position.” Douglas Baumstein, partner at White and Case LLP, which represented the Company in the litigation, stated that “we are very pleased with the court’s ruling, which vindicates our defense and demonstrates that ReWalk made accurate disclosures to the market.”
The U.S. Court of Appeals issued the decision on August 25, 2020.
