NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into SCWorx Corp. (NasdaqGS: WORX).
In mid-April of 2020, the Company announced a purchase order from Rethink My Healthcare (“RMH”) for 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,” as well as a supply agreement to provide COVID-19 test kits from ProMedical Equipment Pty Ltd.
Then, on April 17, 2020, Hindenburg Research issued a report casting doubt on the deal, calling it “completely bogus,” that the test supplier was “laden with red flags” and that the CEO allegedly “falsified his medical credentials,” among other things reported. Then, on April 21, 2020, the SEC suspended trading on the Company’s stock “because of questions and concerns regarding the adequacy and accuracy of publicly available information in the marketplace concerning SCWorx including (1) press releases and other publicly disseminated statements, since at least April 13, 2020, about SCWorx’s agreement to sell COVID-19 tests, and (2) SCWorx’s current report on Form 8-K filed on April 16, 2020, concerning SCWorx’s agreement to sell COVID-19 tests.” On April 30, 2020, the Company disclosed that RMH had terminated the purchase order for the COVID-19 test kits and that the Company had terminated the ProMedical supply agreement.
The Company has been sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws. Recently, the court presiding over that case denied the Company’s motion to dismiss, allowing the case to move forward.
KSF’s investigation is focusing on whether SCWorx’s officers and/or directors breached their fiduciary duties to SCWorx’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of SCWorx shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nasdaqgs-worx/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation’s premier boutique securities litigation law firms. KSF serves a variety of clients – including public institutional investors, hedge funds, money managers and retail investors – in seeking to recover investment losses due to corporate fraud and malfeasance by publicly traded companies. KSF has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
