Philadelphia-based Echo was developing a wireless blood glucose monitor it calls Symphony, until abruptly shutting its doors last month. Echo has lacked a permanent CEO since 2013 and is being run by general counsel Kimberly Burke and interim CFO Charles Bernhardt.
Echo had assented to naming as directors Platinum-nominated Dr. Michael Goldberg and Shepard Goldberg, a father-and-son team that wasted no time in unveiling a new financial plan for Echo. The Goldbergs said their plan has the support of "former key technical staff members" let go when Echo closed up shop. Then, earlier this week, Platinum demanded a special stockholders meeting for a vote on whether to remove "for cause" directors William Grieco, Gabelli Funds director Vincent Enright and Orchid Cellmark CFO James Smith. Echo responded by excoriating the Goldbergs, accusing them of making a presentation relating to Echo during an unauthorized conference call and otherwise seeking to communicate with other Echo shareholders.
Platinum fired back yesterday, saying Grieco, Enright and Smith are "lingering directors" who are not acting in the best interests of shareholders.
"With these statements, purportedly made on behalf of the company, the actions and motives of the lingering directors have once again come into question," Platinum CEO Mark Nordlicht said in prepared remarks. "When the market and stockholders read an Echo press release talking about the company, they should understand who is talking: three lingering directors who do not represent a constituency other than themselves.
"We remind the lingering directors it would be the height of self-dealing to if their misleading comments purportedly made on behalf of the company foreshadow an attempt by them to use the last dollars in Echo for their personal benefit in a proxy fight against Platinum or otherwise," Nordlicht added.
ECTE shares were down 3% in early trading today to 68¢ apiece.