SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of SCWorx Corp. (NASDAQ: WORX) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between April 13, 2020 and April 17, 2020. SCWorx provides software solutions for the management of health care providers' foundational business applications.
If you suffered a loss as a result of SCWorx's misconduct, click here.
SCWorx Corp. (WORX) Accused of Misleading Shareholders
According to the complaint, on April 13, 2020, SCWorx announced it had received a committed purchase order of two million COVID-19 rapid testing kits, "with provision for additional weekly orders of 2 million units for 23 weeks, valued at $35M per week." On this news, SCWorx's share price experienced an impressive 81% increase, closing at $12.02 per share. Then, on April 17, 2020, Hindenburg Research issued a report doubting the validity of the deal, calling it "completely bogus" and stating the test supplier was "laden with red flags" and that the CEO allegedly "falsified his medical credentials." On this news, SCWorx's share price fell $1.19 per share, or more than 17%, over three consecutive trading sessions to close at $5.76 per share on April 21, 2020. Consequently, on April 22, 2020, the SEC halted trading of the Company's stock. Trading of the stock has remained halted since.
If you purchased SCWorx Corp. (WORX) securities between April 13, 2020 and April 17, 2020, you have until June 29, 2020, to ask the court to be appointed lead plaintiff for the class.
Robbins LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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