Lead Plaintiff Deadline: 06/29/2020
SUMMARY OF CASE:
A securities class action has been filed against SCWorx Corp. (WORX) on behalf of persons and entities that purchased or otherwise acquired SCWorx securities between April 13, 2020 through April 17, 2020. This case has been filed in the USDC – S.D.N.Y.
The Complaint alleges on April 13, 2020, before the market opened, SCWorx announced that 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, the Company’s share price increased by $9.77, to close at $12.02 per share on April 13, 2020.
Then, on April 17, 2020, Hindenburg Research issued a report doubting the validity of the deal, calling it “completely bogus,” considering Chief Executive Officer Marc Schessel’s checkered past, questionable credibility of supplier Promedical, and the relatively small size of its client Rethink My Healthcare.
On this news, the Company’s share price fell sharply during trading on April 17, 2020, thereby injuring investors. On April 22, 2020, the SEC halted trading of the Company’s stock.