A class-action lawsuit has been filed against QuidelOrtho Corporation (NASDAQ: QDEL) regarding the company’s statements about its respiratory business and the FDA submission for its “Savanna RVP4 Test.” The lawsuit alleges that QuidelOrtho misled investors by providing false and misleading information.
The complaint claims that QuidelOrtho sold more COVID-19 tests than its distributors and pharmacy chain customers could resell, leading to excess inventories throughout the supply chain. As a result, these customers were expected to significantly reduce their COVID-19 test orders. Additionally, undisclosed problems posed a risk of delayed commercial launch for the Savanna RVP4 Test in the United States.
Investors started to learn the truth on February 13, 2024, when QuidelOrtho announced disappointing financial results for Q4 and FY 2023. The company’s Adjusted EPS was 46% below Wall Street analysts’ expectations due to lower endemic COVID-19 revenues during the quarter. Adjusted EBITDA also came in 28% below consensus expectations, and the company revised its 2024 endemic COVID-19 revenue guidance to $200 million.
On February 21, 2024, QuidelOrtho’s Board terminated President and CEO Douglas Bryant, a decision influenced by the 2024 guidance debacle and investors’ calls for a change in management. Later, on April 2, 2024, the company announced the withdrawal of its submission for the Savanna RVP4 Test due to data that failed to meet expectations.
Since February 13, 2024, the stock price of QuidelOrtho has dropped by nearly 37%, resulting in a loss of approximately $1.6 billion in shareholder value.
The law firm Hagens Berman is investigating whether QuidelOrtho engaged in improper channel-stuffing and the likelihood of FDA approval for the Savanna test. Investors who suffered losses or have information that could assist in the investigation are encouraged to submit their losses to the firm.
For more information about the class-action lawsuit against QuidelOrtho and answers to frequently asked questions, please visit the Hagens Berman website.
This article was created based on information from Hagens Berman, a global plaintiffs’ rights complex litigation law firm dedicated to corporate accountability through class-action law. The firm represents investors, whistleblowers, workers, consumers, and others affected by corporate negligence and fraud.
QuidelOrtho Corporation (NASDAQ: QDEL) is currently facing a class-action lawsuit related to its respiratory business and the FDA submission for its “Savanna RVP4 Test.” The lawsuit alleges that QuidelOrtho provided false and misleading information, leading to a drop in stock price and significant shareholder losses.
One key claim in the lawsuit is that QuidelOrtho sold more COVID-19 tests than its distributors and pharmacy chain customers could resell, resulting in excess inventories throughout the supply chain. This situation led to an expected reduction in COVID-19 test orders from these customers. Additionally, undisclosed problems posed a risk of delayed commercial launch for the Savanna RVP4 Test in the United States.
These allegations came to light on February 13, 2024, when QuidelOrtho announced disappointing financial results for Q4 and FY 2023. The company’s Adjusted EPS and Adjusted EBITDA were significantly below Wall Street analysts’ expectations. This, along with the revised guidance for 2024 endemic COVID-19 revenue, prompted the company’s Board to terminate President and CEO Douglas Bryant on February 21, 2024.
Furthermore, on April 2, 2024, QuidelOrtho announced the withdrawal of its FDA submission for the Savanna RVP4 Test due to data that failed to meet expectations. These developments have had a significant impact on the company, with the stock price dropping by nearly 37% since February 13, 2024, resulting in a loss of approximately $1.6 billion in shareholder value.
One important avenue for investors affected by these events is the law firm Hagens Berman, which is conducting an investigation into potential improper channel-stuffing by QuidelOrtho and the likelihood of FDA approval for the Savanna test. Investors who have suffered losses or possess information relevant to the investigation are encouraged to submit their losses to the firm.
It is important to note that the information provided in this article is based on information from Hagens Berman, a global plaintiffs’ rights complex litigation law firm. For more details about the class-action lawsuit against QuidelOrtho and answers to frequently asked questions, interested parties can visit the Hagens Berman website.
Advantages:
– The class-action lawsuit brings to light potential issues within QuidelOrtho Corporation, which may prompt the company to take corrective measures and improve transparency for investors.
– The investigation by law firm Hagens Berman provides a platform for affected investors to seek compensation for their losses.
Disadvantages:
– The class-action lawsuit and the accompanying investigations may result in a prolonged legal process that can be time-consuming and costly for all parties involved.
– The negative publicity surrounding the lawsuit and the drop in stock price may impact QuidelOrtho’s reputation and investor confidence in the company.
For more information about the class-action lawsuit against QuidelOrtho and how to get in touch with the law firm Hagens Berman, please click here.