Co-Diagnostics, Inc. (NASDAQ: CODX) Investor Securities Class Action Lawsuit 06/17/2020

If you purchased a significant amount of shares of Co-Diagnostics, Inc. (NASDAQ: CODX) between February 25, 2020 and May 15, 2020, and / or if you purchased any NASDAQ: CODX shares prior to February 2020 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: August 17, 2020. NASDAQ: CODX investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Co-Diagnostics
Case Name: 
Co-Diagnostics Shareholder Class Action Lawsuit 06/17/2020
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: CODX
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
06/17/2020
Class Period Begin: 
02/25/2020
Class Period End: 
05/15/2020
Court of Filing: 
U.S. District Court for the District of Utah
Deadline To File for Lead: 
08/17/2020
Summary: 

An investor in shares of Co-Diagnostics, Inc. (NASDAQ: CODX) filed a lawsuit in the U.S. District Court for the District of Utah over alleged violations of Federal Securities Laws by Co-Diagnostics, Inc. in connection with certain allegedly false and misleading statements made between February 25, 2020 and May 15, 2020.

Salt Lake City, UT based Co-Diagnostics, Inc., a molecular diagnostics company, intends to manufacture and sell reagents used for diagnostic tests that function via the detection and/or analysis of nucleic acid molecules. Co-Diagnostics, Inc. reported that its annual Total Revenue rose from $39.91 million in 2018 to $214.97 million in 2019. Shares of Co-Diagnostics, Inc. (NASDAQ: CODX) traded under $1 per share in late 2019.

The plaintiff alleges that Co-Diagnostics announced that it had received regulatory clearance to sell its tests in the European Community on February 24, 2020—the first company in the world to receive this clearance and that on April 6, 2020 the company announced that it had received emergency use authorization for its tests from the U.S. Food and Drug Administration. Shares of Co-Diagnostics, Inc. (NASDAQ: CODX) rose to an an all-time high stock price of $29.72 per share on March 14, 2020.

The plaintiff says that throughout this time and thereafter, Co-Diagnostics, its Chief Technology Officer, and its other officers and directors made unequivocal statements to the market that its Covid-19 tests were 100% accurate, while in reality the test are materially less than 100% accurate.

The plaintiff claims that the crash came when Co-Diagnostics began acting evasively about its Covid-19 tests’ true accuracy and regulatory authorities contradicted claims made by Co-Diagnostics about the accuracy of diagnostic tests. Then on May 14, 2020, Co-Diagnostics was set to announce its first quarter earnings after markets closed. Before the markets closed and before the earnings call, however, news outlets reported that Co-Diagnostics was reticent to participate in U.S.-based testing to verify its accuracy claims.

Shares of Co-Diagnostics, Inc. (NASDAQ: CODX) declined to $14.50 per share on June 8, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Co-Diagnostics, Inc. (NASDAQ: CODX) common shares between February 25, 2020 and May 15, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 25, 2020 and May 15, 2020, the Defendants made continual, knowing and willful misstatements about their main product, a COVID-19 diagnostic test, to pump up the price of Co-Diagnostics, Inc.'s stock while the officers and directors exercised low priced options and dumped their stock into the market, and that their allegedly fraudulent misstatements, and disregard for the basic scientific principles that make their falsity of their statements clear in retrospect, caused investors to lose millions of dollars.