NEW YORK, October 11, 2022 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against Co-Diagnostics, Inc. (“Co-Dx” or the “Company”) (NASDAQ: CODX) and certain of its officers. The class action, filed in United States District Court for the Southern District of New Yorkand registered under 22-cv-07988, is on behalf of a class of all persons and entities who purchased the publicly traded securities of Co-Dx during the period May 12, 2022 until market close on August 11, 2022 (4:00 p.m. ET), inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and rule 10b-5 promulgated thereunder, against the Company and certain of its principal officers.
If you are a shareholder who purchased Co-Dx securities during the Class Period, you have until October 17, 2022 ask the court to name you as the lead plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those making inquiries by email are encouraged to include their mailing address, phone number and number of shares purchased.
[Click here for information about joining the class action]
Co-Dx claims to develop, manufacture and sell reagents used for diagnostic tests that work through the detection and/or analysis of nucleic acid molecules (DNA or RNA), including robust and innovative molecular tools for the detection of infectious diseases, liquid biopsy for cancer screening and agricultural applications.
On April 6, 2020Co-Dx announced that it has received emergency use authorization for its Logix Smart™ COVID-19 test from the Food and Drug Administration, allowing it to begin selling the test to laboratories certified by the Center for Medicare and Medicaid Services under the Clinical Laboratory Improvement Act (“CLIA”) to accept human specimens for diagnostic testing throughout the United States. Co-Dx has since sold its Logix Smart™ COVID-19 test to these CLIA labs. Co-Dx serves more than 500 centralized lab customers, including approximately 200 U.S. CLIA labs, 130 overseas labs, and approximately 200 labs in India certified by the National Accreditation Board for Testing and Calibration Laboratories.
The Complaint alleges that, during the Class Period, Defendants repeatedly touted the Logix Smart™ COVID-19 Test, reassuring investors of demand for the product. At the same time, defendants failed to disclose that: (1) demand for the Logix Smart™ COVID19 test fell throughout the quarter ended June 30, 2022and (2) therefore, the Defendants’ positive statements regarding the Logix Smart™ COVID-19 Test claim lacked a reasonable basis.
On August 11, 2022Co-Dx shocked investors when, after the market closed, the company issued a press release and filed a report with the U.S. Securities and Exchange Commission on Form 8-K that disclosed its financial results for the quarter ended June 30, 2022in which the Company disclosed income from $5.0 million for the quarter ended June 30, 2022down $27.4 million over the prior year period, a decline of almost 82%. The Company primarily attributed the decline to lower demand for the Logix Smart™ COVID-19 test.
At this news, Co-Dx’s common stock price fell $1.98 per share, i.e. 30.65%, from a closing price of $6.46 per share on August 11, 2022to close at $4.48 per share on August 12, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Parisand Tel Aviv, is recognized as one of the leading law firms in the areas of corporate litigation, securities and antitrust. 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 the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP