Co-Diagnostics, Inc. Wins Dismissal of Class Action Lawsuit
Co-Diagnostics (CODX) has secured a significant legal victory as the United States District Court for the District of Utah granted complete dismissal of a securities class action lawsuit on March 4, 2025. The lawsuit, filed by Gelt Trading on June 15, 2020, alleged violations of Securities Exchange Act sections regarding the company's May 1, 2020 press release about its Logix Smart® COVID-19 test.
The plaintiff claimed that CODX's statement about '100% sensitivity and 100% specificity' was misleading to investors, suggesting the test was perfectly accurate. However, the Court ruled in favor of CODX, concluding that the plaintiff failed to demonstrate loss causation, as none of the three alleged corrective disclosures effectively 'corrected' the May 1 press release or impacted the stock price.
BakerHostetler, representing CODX, successfully argued that the supposedly contradictory information was already known to the market and reflected in the stock price. This dismissal allows the company to focus on its core mission of expanding global access to high-quality molecular diagnostics.
Co-Diagnostics (CODX) ha ottenuto una significativa vittoria legale poiché il Tribunale Distrettuale degli Stati Uniti per il Distretto dello Utah ha concesso la completa archiviazione di una causa collettiva in materia di titoli il 4 marzo 2025. La causa, intentata da Gelt Trading il 15 giugno 2020, sosteneva violazioni delle sezioni della Legge sui Titoli riguardanti il comunicato stampa del 1 maggio 2020 della società riguardo al suo test Logix Smart® COVID-19.
Il querelante sosteneva che l'affermazione di CODX riguardo a '100% di sensibilità e 100% di specificità' fosse fuorviante per gli investitori, suggerendo che il test fosse perfettamente accurato. Tuttavia, il Tribunale ha emesso una sentenza a favore di CODX, concludendo che il querelante non era riuscito a dimostrare la causalità della perdita, poiché nessuna delle tre presunte comunicazioni correttive aveva effettivamente 'corretto' il comunicato del 1 maggio né aveva impattato sul prezzo delle azioni.
BakerHostetler, che rappresenta CODX, ha sostenuto con successo che le informazioni presuntamente contraddittorie erano già note al mercato e riflesse nel prezzo delle azioni. Questa archiviazione consente alla società di concentrarsi sulla sua missione principale di espandere l'accesso globale a diagnosi molecolari di alta qualità.
Co-Diagnostics (CODX) ha conseguido una victoria legal significativa, ya que el Tribunal de Distrito de los Estados Unidos para el Distrito de Utah otorgó la desestimación completa de una demanda colectiva de valores el 4 de marzo de 2025. La demanda, presentada por Gelt Trading el 15 de junio de 2020, alegaba violaciones de secciones de la Ley de Intercambio de Valores relacionadas con el comunicado de prensa de la compañía del 1 de mayo de 2020 sobre su prueba Logix Smart® COVID-19.
El demandante afirmaba que la declaración de CODX sobre '100% de sensibilidad y 100% de especificidad' era engañosa para los inversores, sugiriendo que la prueba era perfectamente precisa. Sin embargo, el Tribunal falló a favor de CODX, concluyendo que el demandante no logró demostrar la causalidad de la pérdida, ya que ninguna de las tres supuestas divulgaciones correctivas 'corrigió' efectivamente el comunicado del 1 de mayo ni impactó el precio de las acciones.
BakerHostetler, que representa a CODX, argumentó con éxito que la supuesta información contradictoria ya era conocida en el mercado y estaba reflejada en el precio de las acciones. Esta desestimación permite a la empresa centrarse en su misión principal de expandir el acceso global a diagnósticos moleculares de alta calidad.
Co-Diagnostics (CODX)는 2025년 3월 4일 유타 지방법원에서 증권 집단 소송의 전면 기각을 승인받아 중요한 법적 승리를 거두었습니다. 이 소송은 2020년 6월 15일 Gelt Trading에 의해 제기되었으며, 회사의 2020년 5월 1일자 보도 자료와 관련하여 증권거래법의 조항을 위반했다고 주장했습니다.
원고는 CODX의 '100% 민감도 및 100% 특이도'에 대한 진술이 투자자들에게 오해를 불러일으키며, 테스트가 완벽하게 정확하다고 제안했다고 주장했습니다. 그러나 법원은 CODX에 유리한 판결을 내리며 원고가 손실 인과관계를 입증하지 못했다고 결론지었습니다. 세 가지 주장된 수정 공시 중 어느 것도 5월 1일 보도 자료를 '수정'하거나 주가에 영향을 미치지 않았습니다.
CODX를 대표하는 BakerHostetler는 이른바 모순된 정보가 이미 시장에 알려져 있었고 주가에 반영되었다고 성공적으로 주장했습니다. 이번 기각은 회사가 고품질 분자 진단에 대한 글로벌 접근성을 확대하는 핵심 임무에 집중할 수 있도록 합니다.
Co-Diagnostics (CODX) a obtenu une victoire juridique significative, car le tribunal de district des États-Unis pour le district de l'Utah a accordé le 4 mars 2025 le rejet complet d'une action collective en valeurs mobilières. L'action, intentée par Gelt Trading le 15 juin 2020, alléguait des violations des sections de la loi sur les échanges de valeurs mobilières concernant le communiqué de presse de la société du 1er mai 2020 au sujet de son test Logix Smart® COVID-19.
Le plaignant soutenait que la déclaration de CODX concernant '100% de sensibilité et 100% de spécificité' était trompeuse pour les investisseurs, suggérant que le test était parfaitement précis. Cependant, le tribunal a statué en faveur de CODX, concluant que le plaignant n'avait pas réussi à démontrer la causalité de la perte, aucune des trois divulgations correctives alléguées n'ayant effectivement 'corrigé' le communiqué du 1er mai ou influencé le prix de l'action.
BakerHostetler, représentant CODX, a soutenu avec succès que les informations prétendument contradictoires étaient déjà connues du marché et reflétées dans le prix de l'action. Ce rejet permet à l'entreprise de se concentrer sur sa mission principale d'élargir l'accès mondial à des diagnostics moléculaires de haute qualité.
Co-Diagnostics (CODX) hat einen bedeutenden rechtlichen Sieg errungen, da das US-Bezirksgericht für den Bezirk Utah am 4. März 2025 die vollständige Abweisung einer Sammelklage im Wertpapierbereich genehmigte. Die Klage, die am 15. Juni 2020 von Gelt Trading eingereicht wurde, behauptete Verstöße gegen Bestimmungen des Wertpapierhandelsgesetzes in Bezug auf die Pressemitteilung des Unternehmens vom 1. Mai 2020 über seinen Logix Smart® COVID-19-Test.
Der Kläger behauptete, dass CODXs Aussage über '100% Sensitivität und 100% Spezifität' irreführend für die Investoren war und suggerierte, dass der Test perfekt genau sei. Das Gericht entschied jedoch zugunsten von CODX und kam zu dem Schluss, dass der Kläger es versäumt hatte, einen Verlustursache nachzuweisen, da keine der drei angeblichen korrigierenden Offenlegungen die Pressemitteilung vom 1. Mai effektiv 'korrigiert' oder den Aktienkurs beeinflusst hatte.
BakerHostetler, der CODX vertritt, argumentierte erfolgreich, dass die angeblich widersprüchlichen Informationen bereits dem Markt bekannt waren und sich im Aktienkurs widerspiegelten. Diese Abweisung ermöglicht es dem Unternehmen, sich auf seine Hauptaufgabe zu konzentrieren, den globalen Zugang zu hochwertigen molekularen Diagnosen auszubauen.
- Complete dismissal of securities class action lawsuit reduces legal liability
- Removal of potential financial burden from litigation
- Legal validation of company's COVID-19 test marketing claims
- Potential for plaintiff to file an appeal
- Legal expenses incurred from defending the lawsuit
Insights
Co-Diagnostics has secured a significant legal victory with the complete dismissal of a securities class action lawsuit that had been pending since 2020. This represents the removal of a substantial contingent liability for the micro-cap company.
The lawsuit, which alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act, centered on claims that CODX made misleading statements about its Logix Smart® COVID-19 test performance. The United States District Court for the District of Utah granted summary judgment in the company's favor, concluding that the plaintiff failed to demonstrate loss causation.
This legal win provides multiple benefits for CODX:
- Eliminates potential financial damages that could have been material for a company with only
$15.6 million market capitalization - Removes ongoing legal expenses and management distraction
- Strengthens corporate credibility regarding the performance claims of its diagnostic products
- Allows refocusing of resources on operational priorities rather than litigation defense
The court's decision to rule on summary judgment is particularly notable, as this procedural mechanism requires the court to find no genuine dispute of material fact - indicating a decisive victory rather than a technical dismissal. While an appeal remains possible, the comprehensive nature of this ruling significantly strengthens CODX's position.
For a diagnostics company where scientific credibility is paramount, this legal validation of its testing claims removes both financial uncertainty and potential reputational damage that could have impacted future business development.
On June 15, 2020, Plaintiff Gelt Trading, Ltd. filed a securities class action against Co-Diagnostics, Inc. and certain of the Company's current and former directors and officers alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
At issue was the Company's May 1, 2020, press release, which disclosed, among other things, that the Company's Logix Smart® COVID-19 test demonstrated "
BakerHostetler was retained to replace prior counsel after the motion to dismiss was denied and the case was in the early phases of discovery. On summary judgment, BakerHostetler argued that Plaintiff could not establish any genuine issue of material fact supporting liability as to any element of its Section 10(b) claim—falsity, scienter, reliance, loss causation, or damages. BakerHostetler also argued that Plaintiff's experts' testimony—which related to clinical testing and loss causation—should be excluded on summary judgment under Daubert.
On March 4, 2025, after oral argument, the Court granted Defendants' Daubert motion to exclude the testimony of Plaintiff's loss causation expert and granted summary judgment for Defendants, concluding that Plaintiff could not demonstrate loss causation. The Court held that none of the three Alleged Corrective Disclosures actually "corrected" the May 1 press release, either because they did not discuss the Company's Logix Smart test, or because the allegedly contradictory information was long known to the market and already baked into the Company's stock price. Accordingly, Plaintiff could not establish that the May 1 press release was the cause of Plaintiff's or the class's losses. Having reached this conclusion, the Court declined to address the other summary judgment arguments or Daubert motions.
The Company regards this dismissal as a tremendous victory and is optimistic about its chances of prevailing in any appeal Plaintiff might file. The Company looks forward to putting the matter behind it, as it moves ahead with its mission of increasing the availability of high-quality molecular diagnostics on a global scale.
About Co-Diagnostics, Inc.:
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SOURCE Co-Diagnostics
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