SAN FRANCISCO, June 01, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges QuidelOrtho Corporation (NASDAQ: QDEL) investors who suffered substantial losses to submit your losses now.
Class Period: Feb. 18, 2022 – Apr. 1, 2024
Lead Plaintiff Deadline: June 11, 2024
Visit: www.hbsslaw.com/investor-fraud/QDEL
Contact the Firm Now: QDEL@hbsslaw.com
844-916-0895
QuidelOrtho Corporation (NASDAQ: QDEL) Securities Class Action:
The litigation is focused on the propriety of QuidelOrtho’s past assurances about its preparedness to maintain a stable high margin revenue stream from its respiratory business in the face of the COVID-19 pandemic becoming an endemic and about its FDA submission for its purported “next flagship product” (the “Savanna RVP4 Test”) being “on track.”
On Apr. 2, 2024, the price of QuidelOrtho shares fell $4.85 (10%) after the company announced that it withdrew its submission for the Savanna RVP4 Test because recent data failed to meet expectations. This price drop occurred after a series of disastrous revelations culminating in the filing of a securities class action on behalf of investors.
Previously, on Feb. 14, 2024, the price of QuidelOrtho shares crashed $21.50 (32%) after the company announced disastrous Q4 and FY 2023 financial results. Among other things, the company’s Adjusted EPS was 46% below the midpoint of Wall Street analysts’ expectations which the company blamed on lower endemic COVID-19 revenues during the quarter from distributor destocking. In addition, QuidelOrtho’s Adjusted EBITDA came in 28% below the analysts’ consensus expectations and the company slashed its 2024 endemic COVID-19 revenue guidance to $200 million.
Within days, on Feb. 21, 2024, QuidelOrtho announced that its Board terminated President and CEO Douglas Bryant, with one analyst commenting “[f]ollowing last week’s 2024 guidance debacle and the ensuing calls from many investors advocating for a change in management, we understand why the [B]oard made this move.”
The complaint alleges QuidelOrtho misled investors by making statements that were false and misleading because it knew or deliberately disregarded that: (1) it sold more COVID-19 tests to its distributors and pharmacy chain customers than they could resell to healthcare providers and end customers; (2) excess inventories of COVID-19 tests existed throughout the supply chain; (3) as a result, its distributor and pharmacy chain customers were poised to significantly reduce their COVID-19 test orders; and (4) undisclosed problems created a heightened risk that the Savanna RVP4 Test would experience a delayed commercial launch in the U.S..
Since Feb. 13, 2024, the price of QuidelOrtho shares has fallen $24.59, or nearly 37%, wiping out about $1.6 billion of shareholder value.
“We are investigating whether QuidelOrtho may have engaged in improper channel-stuffing and about the likelihood of FDA approval for the Savanna test,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in QuidelOrtho and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the QuidelOrtho case and our investigation, read more »
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
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