The Massachusetts District Court dismissed the Securities Act claims made by investors, led by Wang Yan, due to a failure to state a claim, while also finding that Yan did not have standing to bring the Exchange Act claims, according to a court filing. Yan, on behalf of proposed classes of investors, alleged that the company misrepresented and omitted details about its dealings with the FDA in its initial public offering registration statement and subsequent quarterly and annual disclosures.
Yan failed to allege a violation of the Securities Act and his challenge of ReWalk’s alleged failures to make certain disclosures after his purchase of ReWalk securities, according to the court.
The court concluded that the proposed plaintiff would be denied from joining the party, affirming the dismissal of the amended complaint.
“In sum, the complaint alleges no statements by defendants concerning ReWalk’s proceedings with the FDA that they had reason to believe were contrary to the facts or previous disclosures, there is no allegation that defendants regarded the warning letter as calling on ReWalk to do what it did not intend to do, and there are no allegations of surrounding circumstances that might cast ReWalk’s communications in a more suspicious light,” the filing said.