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Echo Therapeutics shareholder withdraws lawsuit against company

Manchester Management Co. LLC dismissed a lawsuit against Echo Therapeutics Inc. a week after the U.S. federal court lifted a temporary restraining order against the company and some of its directors.

Manchester Management, a shareholder of the company, alleged that Echo Therapeutics and directors Michael Goldberg, Shepard Goldberg and Alec Goldberg violated securities laws, stole trade secrets, and breached their contractual obligations and fiduciary duty.

Manchester Management also named fellow Echo Therapeutics shareholder Platinum Management (NY) LLC as a defendant in the lawsuit and sought more than $800,000 in damages. However, the U.S. District Court for the Southern District of New York concluded that Manchester Management did not have enough evidence to substantiate its claims.

Manchester Management is dismissing the lawsuit as a result.

Echo Therapeutics said it will consider legal action against Manchester Management.