The war of words between Echo Therapeutics (NSDQ:ECTE) and Platinum Equity resumed today with Echo claiming that the activist investor may have run afoul of federal securities laws with a preliminary proxy statement.
Philadelphia-based Echo has suspended operations until it can find outside investment, but has rejected terms for an infusion offered by Platinum Equity. Today the company’s board urged stockholders to discard any proxy solicitation materials they receive from Platinum.
"We are disappointed that, once again, Platinum is seeking to pursue a costly and disruptive proxy contest to facilitate the advancement of its own agenda and further its future ability to control Echo," according to a press release. "We also believe that the preliminary proxy statement that Platinum has filed with the Securities & Exchange Commission is procedurally and substantively deficient and may involve violations of the federal securities law and rules and regulations governing proxy solicitations."
"In the coming days, we intend to bring to the attention of the SEC and other regulatory organizations our concerns," Echo added.
Echo is developing a wireless glucose monitoring system for use in hospitals. Last week, the company announced it had suspended operations and retained PricewaterhouseCooper’s restructuring and recovery services practice for help addressing its cash crisis. Platinum opened up the proxy war last April, nominating renegade directors who later agitated for changes at the company.