NEW YORK, Dec. 22, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of Envoy Medical, Inc. (“Envoy” or the “Company”) (NASDAQ: COCH). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether Envoy and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On December 19, 2023, Envoy disclosed in a filing with the U.S. Securities and Exchange Commission that “[o]n December 14, 2023, the audit committee (the ‘Audit Committee’) of the board of directors of Envoy . . . concluded that the Company’s previously issued unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 (the ‘Previous Financial Statements’ and such period, the ‘Affected Period’), should no longer be relied upon.”
Envoy stated that “[t]he determination relates to the Company’s interpretation of the accounting guidance applicable to the forward purchase agreement, dated April 17, 2023, by and among the Company, Envoy Medical Corporation, Meteora Special Opportunity Fund I, LP, Meteora Capital Partners, LP, Meteora Select Trading Opportunities Master, LP and Meteora Strategic Capital, LLC (as amended to date, the ‘FPA’).
The Company expects to restate the accounting treatment of the FPA for the Affected Period to reclassify the prepayment amount, currently recorded as part of the forward purchase agreement assets in the condensed consolidated balance sheet of the Previous Financial Statements, to the equity section of the condensed consolidated balance sheet with any remaining balance of the prepaid forward contract, including the maturity consideration and the share consideration, as non-current liabilities in its condensed consolidated balance sheet for the Affected Period.”
Envoy further stated “that the error above is consistent with the Company’s existing material weaknesses in internal control over financial reporting as of September 30, 2023, as previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023.”
On this news, Envoy’s stock price fell $0.27 per share, or 10.71%, to close at $2.25 per share on December 20, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
