A class action lawsuit was filed against QuidelOrtho Corporation f/k/a Quidel Corporation (NASDAQ:QDEL) on April 12, 2024. The plaintiffs (shareholders) alleged that they bought QDEL stock at artificially inflated prices between February 18, 2022 and April 1, 2024 (Class Period) and are now seeking compensation for their financial losses. Investors who bought QDEL stock during that period can click here to learn about joining the lawsuit.
QuidelOrtho is one of the world’s largest in vitro diagnostics (IVD) providers, with expertise in immunoassay and molecular testing. QuidelOrtho was formed via the merger of Quidel Corporation and Ortho Clinical Diagnostics in 2022. QuidelOrtho offers a wide range of point-of-care tests for infectious diseases, critical cardiac health and autoimmune biomarkers, and a host of clinical and at-home products to detect COVID-19.
The plaintiffs maintain that QuidelOrtho and three of its current and/or former senior officers deceived investors by omitting truthful information about the Company’s COVID-19 test inventory and potential impacts on the Savanna RVP4 Test launch in the U.S. from SEC filings and related documents.
The truth was revealed in a series of events that occurred between February 13, 2024 and April 2, 2024. During this time, QDEL announced disappointing results for Q4FY23, which was followed by stock downgrades by analysts. Moreover, the company abruptly terminated its CEO and announced his resignation from the Board of Directors. Finally, QuidelOrtho also announced the withdrawal of its FDA 510(k) submission for approval to sell the Savanna RVP4 Test in the U.S. after recent data did not meet expectations.
During the Class Period, the defendants had reiterated the company’s heavy reliance on sales from its COVID-19 and influenza diagnostic tests to sustain its financial performance. Interestingly, the Savanna RVP4 Test, whose withdrawal was mentioned above, had been developed as a real-time PCR test for the detection and differentiation of influenza A (flu A), influenza B (flu B), and other respiratory viruses.
As per the class action lawsuit, QuidelOrtho caused its stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about the company’s financial prospects during the Class Period.
Unfortunately, since February 13, QDEL stock has lost 38.4%, causing massive damage to shareholders’ returns.
