The U.S. District Court for the Southern District of New York lifted a temporary restraining order against Echo Therapeutics Inc. and some of its directors.
The temporary injunction was placed following allegations by the company's shareholder, Manchester Management Co. LLC, that Echo Therapeutics and its 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 federal court concluded that Manchester Management did not have enough evidence to substantiate its claims. Echo Therapeutics said it will now consider legal action against Manchester Management.