QuidelOrtho Corporation

On February 13, 2024, QuidelOrtho released its fourth quarter 2023 financial results, and reported Adjusted Earnings Per Share that fell 46% below the midpoint of analyst expectations and attributed it to lower endemic COVID-19 revenues. Additionally, the Company lowered its 2024 financial forecast.

On this news, QuidelOrtho’s stock price fell $21.50, or 32.3%, to close at $45.27 per share on February 14, 2024, thereby injuring investors.

Then, on February 21, 2024, QuidelOrtho announced that it terminated the Company’s President and Chief Executive Officer. The Company further stated that the termination was an “Involuntary Termination.”

Then, on April 2, 2024, Quidel Ortho disclosed that it had withdrawn its FDA 510(k) submission for approval to sell its COVID-19 and respiratory Savanna Respiratory Viral Panel-4 Test (the “Savanna RVP4 Test”) after recent data did not meet expectations.

On this news, QuidelOrtho’s stock price fell $4.85, or 10.3%, to close at $42.15 per share on April 2, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that QuidelOrtho sold more COVID-19 tests to its distributors and pharmacy chain customers than they could resell to healthcare providers and end customers; (2) that excess inventories of COVID-19 tests existed throughout the supply chain; (3) that, as a result, QuidelOrtho’s distributors and pharmacy chain customers were poised to significantly reduce their COVID-19 test orders; (4) that undisclosed problems created a heightened risk that the Savanna RVP4 Test would experience a delayed commercial launch in the United States; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.