AudioEye Announces Dismissal of Lawsuit Against Company and CEO David Moradi
AudioEye (AEYE) announced that the Supreme Court of New York has fully dismissed a lawsuit filed by former employee David J. Kovacs against the company, CEO David Moradi, and Board Chairman Carr Bettis. The lawsuit, which alleged stock manipulation and retaliation under New York Labor Law, was dismissed with prejudice, preventing refiling. The plaintiff also voluntarily abandoned defamation and tortious interference claims.
The company had previously filed its own lawsuit against Kovacs in Florida in April 2024 for defamation and other causes. According to AudioEye's complaint, Kovacs was terminated for cause after displaying irrational behavior and making threats to initiate a 'short and distort' scheme against the company's stock. Kovacs' motion to dismiss AudioEye's Florida lawsuit was denied, and the company continues to pursue its claims.
AudioEye (AEYE) ha annunciato che la Corte Suprema di New York ha completamente respinto una causa intentata dall'ex dipendente David J. Kovacs contro l'azienda, il CEO David Moradi e il presidente del consiglio Carr Bettis. La causa, che accusava di manipolazione azionaria e ritorsione ai sensi della legge sul lavoro di New York, è stata respinta con pregiudizio, impedendo di rifare la causa. Il querelante ha anche abbandonato volontariamente le accuse di diffamazione e interferenza illecita.
L'azienda aveva precedentemente intentato una propria causa contro Kovacs in Florida nell'aprile 2024 per diffamazione e altri motivi. Secondo il reclamo di AudioEye, Kovacs è stato licenziato per giusta causa dopo aver mostrato comportamenti irrazionali e minacciato di avviare uno schema di 'short and distort' contro le azioni dell'azienda. La mozione di Kovacs per respingere la causa di AudioEye in Florida è stata negata e l'azienda continua a perseguire le sue pretese.
AudioEye (AEYE) anunció que la Corte Suprema de Nueva York ha desestimado completamente una demanda presentada por el ex empleado David J. Kovacs contra la compañía, el CEO David Moradi y el presidente de la junta Carr Bettis. La demanda, que alegaba manipulación de acciones y represalias bajo la Ley Laboral de Nueva York, fue desestimada con prejuicio, impidiendo su re-presentación. El demandante también abandonó voluntariamente las acusaciones de difamación e interferencia tortuosa.
La compañía había presentado previamente su propia demanda contra Kovacs en Florida en abril de 2024 por difamación y otras causas. De acuerdo con la queja de AudioEye, Kovacs fue despedido por una causa justificada después de mostrar un comportamiento irracional y hacer amenazas de iniciar un esquema de 'short and distort' contra las acciones de la compañía. La moción de Kovacs para desestimar la demanda de AudioEye en Florida fue denegada y la compañía continúa persiguiendo sus reclamaciones.
AudioEye (AEYE)는 뉴욕 대법원이 전 직원 데이비드 J. 코바크스가 회사, CEO 데이비드 모라디, 이사회 의장 카르 베티스를 상대로 제기한 소송을 전면 기각했다고 발표했습니다. 이 소송은 주식 조작과 뉴욕 노동법에 따른 보복을 주장했으며, 재소를 막기 위해 각하되었습니다. 원고는 또한 명예 훼손 및 불법 간섭 주장도 자발적으로 포기했습니다.
회사는 2024년 4월 플로리다에서 코바크스를 상대로 명예 훼손 및 기타 혐의로 소송을 제기한 바 있습니다. 오디오아이의 고소장에 따르면, 코바크스는 비합리적인 행동을 보이고 회사 주식에 대한 '쇼트 앤 디스토트' 계획을 추진하겠다고 협박한 후 정당한 이유로 해고되었습니다. 코바크스의 플로리다 소송 기각 신청은 기각되었으며, 회사는 자신의 주장을 계속 추구하고 있습니다.
AudioEye (AEYE) a annoncé que la Cour suprême de New York a entièrement rejeté une poursuite déposée par l'ancien employé David J. Kovacs contre l'entreprise, le PDG David Moradi et le président du conseil Carr Bettis. La poursuite, qui alléguait une manipulation boursière et des représailles au titre de la loi sur le travail de New York, a été rejetée avec préjudice, empêchant tout nouveau dépôt. Le plaignant a également abandonné volontairement ses allégations de diffamation et d'interférence illégale.
L'entreprise avait auparavant déposé sa propre poursuite contre Kovacs en Floride en avril 2024 pour diffamation et d'autres causes. Selon la plainte d'AudioEye, Kovacs a été licencié pour motif valable après avoir montré un comportement irrationnel et avoir proféré des menaces d'initier un schéma 'short and distort' contre les actions de l'entreprise. La motion de Kovacs pour faire rejeter la poursuite d'AudioEye en Floride a été refusée, et l'entreprise continue de défendre ses revendications.
AudioEye (AEYE) gab bekannt, dass der Oberste Gerichtshof von New York eine Klage des ehemaligen Mitarbeiters David J. Kovacs gegen das Unternehmen, CEO David Moradi und Vorstandsvorsitzenden Carr Bettis vollständig abgewiesen hat. Die Klage, die Aktienmanipulation und Vergeltung nach dem Arbeitsrecht von New York vorwarf, wurde mit Vorurteil abgewiesen, was eine neuerliche Einreichung verhindert. Der Kläger gab ebenfalls freiwillig die Anklagen wegen Verleumdung und rechtswidriger Einflussnahme auf.
Das Unternehmen hatte zuvor im April 2024 in Florida eine eigene Klage gegen Kovacs wegen Verleumdung und anderer Gründe eingereicht. Laut der Klage von AudioEye wurde Kovacs aus wichtigem Grund entlassen, nachdem er irrationale Verhaltensweisen zeigte und drohte, ein 'Short-and-Distort'-Schema gegen die Aktien des Unternehmens einzuleiten. Kovacs' Antrag auf Abweisung der Klage von AudioEye in Florida wurde abgelehnt, und das Unternehmen verfolgt weiterhin seine Ansprüche.
- Legal victory with complete dismissal of lawsuit against company and executives
- Company's counter-lawsuit against former employee proceeding in Florida court
- Ongoing legal proceedings in Florida may incur continued legal expenses
Insights
The dismissal of this lawsuit with prejudice marks a decisive legal victory for AudioEye, carrying significant positive implications for corporate stability and investor confidence. When courts dismiss cases with prejudice, it represents the strongest possible vindication, as it permanently bars the plaintiff from refiling similar claims.
The resolution eliminates several key risk factors that typically concern investors:
- Potential financial liability from damages claims
- Executive distraction from core business operations
- Reputational damage from allegations of corporate misconduct
- Uncertainty over corporate governance practices
Particularly noteworthy is AudioEye's aggressive counter-strategy in Florida, where their lawsuit against the former employee continues to advance after surviving a motion to dismiss. This demonstrates robust corporate governance and willingness to protect shareholder interests through affirmative legal action.
The company's transparent communication about the court's decision and ongoing legal strategy suggests strong corporate governance practices. This type of clear disclosure helps maintain market confidence and reduces information asymmetry between management and investors.
Looking ahead, this ruling strengthens AudioEye's position in their ongoing Florida litigation and may serve as a deterrent against future frivolous claims. For investors, this represents reduced legal risk and validates the company's management integrity - important factors in corporate valuation models.
Court dismisses lawsuit with prejudice, finding claims brought by David J. Kovacs to be without merit
The lawsuit, which included claims of stock manipulation and retaliation under New York Labor Law and intentional infliction of emotional distress, was dismissed with prejudice, meaning the claims cannot be refiled. Additionally, the plaintiff voluntarily abandoned claims of defamation and tortious interference before the Court's ruling.
"We are pleased with the Court's decision to dismiss this baseless lawsuit in its entirety," said David Moradi, CEO of AudioEye. "It was clear from the start that these claims were brought forward by a disgruntled former employee with personal motives that had nothing to do with the facts. The Court's ruling reaffirms what we have known—these claims had no merit."
Pattern of Misconduct and Erratic Behavior
AudioEye had previously filed a lawsuit in
Mr. Kovacs moved to dismiss AudioEye's action against him in
About AudioEye
AudioEye exists to ensure the digital future we build is accessible. The gold standard for digital accessibility, AudioEye's comprehensive solution combines industry-leading AI automation technology with expert fixes informed by the disability community. This powerful combination delivers industry-leading protection, ensuring businesses of all sizes — including over 126,000 customers like Samsung, Calvin Klein, and Samsonite — meet and exceed compliance standards. With 23 US patents, AudioEye's solution includes 24/7 accessibility monitoring, automated WCAG issue testing and fixes, expert testing, developer tools, and legal protection, empowering organizations to confidently create accessible digital experiences for all.
Media Contact
Sierra Thomas
AudioEye PR
sierra.thomas@audioeye.com
Investor Contact
Tom Colton
Gateway Group, Inc.
AEYE@gateway-grp.com
949-574-3860
View original content to download multimedia:https://www.prnewswire.com/news-releases/audioeye-announces-dismissal-of-lawsuit-against-company-and-ceo-david-moradi-302367294.html
SOURCE AudioEye, Inc.
FAQ
What was the outcome of the lawsuit against AudioEye (AEYE) and its CEO in New York?
What were the main allegations in the dismissed lawsuit against AudioEye (AEYE)?
What legal action has AudioEye (AEYE) taken against former employee David Kovacs?
What allegations did AudioEye (AEYE) make against David Kovacs in their Florida lawsuit?
