SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that it is investigating SCWorx Corp. (NASDAQ: WORX) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. SCWorx provides software solutions for the management of health care providers' foundational business applications.
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SCWorx Corp. (WORX) Accused of Misleading Shareholders
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.
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