NEW YORK (Legal Newsline) - Investors are suing a company whose business of respiratory infection tests spiked during the COVID pandemic after less-than-thrilling financial results.
QuidelOrtho Corporation, formerly known as Quidel Corporation, along with its executives Douglas Bryant, Joseph Busky, and Randall Steward, is facing a class-action lawsuit filed April 12 in New York federal court by the Bristol County Retirement System.
The lawsuit alleges violations of federal securities laws between February 18, 2022, and April 1, 2024.
The plaintiff accuses QuidelOrtho of misleading investors by failing to disclose certain adverse facts about its business operations and prospects. Specifically, the complaint alleges that the company sold more COVID-19 tests to distributors and pharmacy chains than they could resell to healthcare providers and end customers, leading to excess inventories throughout the supply chain.
The lawsuit also claims that undisclosed problems heightened the risk of a delayed commercial launch in the United States for QuidelOrtho's new test called Savanna Respiratory Viral Panel-4 (Savanna RVP4 Test), which tests for COVID-19 and other respiratory conditions.
Francis McConville of Labaton Keller Sucharow represents the plaintiff.