SAN DIEGO, April 17, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired QuidelOrtho Corporation f/k/a Quidel Corporation (NASDAQ: QDEL) common stock between February 18, 2022 and April 1, 2024. QuidelOrtho provides tests for the detection and diagnosis of various respiratory diseases and other medical conditions.
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The Allegations: Robbins LLP is Investigating the Allegations that QuidelOrtho Corporation (QDEL) Misled Investors Regarding Demand for its Product
According to the complaint, defendants assured investors that QuidelOrtho was well positioned to maintain a stable high margin revenue stream from its respiratory business. Among other strategies, the Company aimed to launch its “next flagship product,” a new test called the Savanna Respiratory Viral Panel-4 (the “Savanna RVP4 Test,” which tests for COVID-19 and other respiratory conditions) by utilizing its commercial distribution network.
However, plaintiff alleges that, during the class period, defendants failed to disclose that: (a) QuidelOrtho sold more COVID-19 tests to its distributors and pharmacy chain customers than they could resell to healthcare providers and end customers; (b) excess inventories of COVID-19 tests existed throughout the supply chain; and (c) as a result, QuidelOrtho’s distributors and pharmacy chain customers were poised to significantly reduce their COVID-19 test orders. When the truth was revealed, the price of QuidelOrtho stock dropped $21.50, or more than 32%, to close at $45.27 on February 14, 2024.
Plaintiff further alleges that undisclosed problems created a heightened risk that the Savanna RVP4 Test would experience a delayed commercial launch in the United States. On April 2, 2024, after QuidelOrtho announced it had withdrawn its FDA 510(k) submission for approval to sell Savanna PVPR Test in the U.S., the Company’s stock dropped $4.85, or more than 10%, to close at $42.15 on April 2, 2024.
What Now: You may be eligible to participate in the class action against QuidelOrtho Corporation. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by June 11, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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