A U.S. Court of Appeals for the First Circuit has dismissed a 2017 class action lawsuit filed against ReWalk Robotics of Marlborough on Tuesday, according to a press release from the medical device manufacturer.
“These decisions are consistent with our expectations and that of our counsel,” said ReWalk CEO Larry Jasinski in a statement. “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.”
The lawsuit alleged ReWalk misrepresented itself during its initial public offering in September 2014, as well as in public statements made after the IPO, violating the Securities Act of 1993 and Securities Exchange Act of 1934, according to a press release.
The Court of Appeals upheld a U.S. District Court decision dismissing the Securities Act claims for failure to state a claim. In that decision, the District Court determined the plaintiffs filing the suit did not have sufficient standing to bring Exchange Act claims, according to a press release. In turn, the Court of Appeals determined no claim was stated against the company for violating the Exchange Act, resulting in the case’s dismissal.
