Philadelphia-based Echo, which is developing a wireless blood glucose monitor it calls Symphony, assented to naming directors nominated by Platinum Investors, Dr. Michael Goldberg and Shepard Goldberg. The father-and-son team wasted no time in unveiling a new financial plan for Echo, which was forced to suspend operations last week for lack of cash.
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.
"We are extremely disappointed that the Goldbergs have engaged in such unauthorized and irresponsible actions, actions that have the potential to confuse and mislead our stockholders as well as the stock market," Echo said today in a statement. "These actions not only violate our board’s policies but also call into question the Goldbergs’ understanding of the duties and responsibilities of directors of a NASDAQ-listed, publicly traded company."
Echo has lacked a permanent CEO since 2013 and is being run by general counsel Kimberly Burke and interim CFO Charles Bernhardt.