QuidelOrtho Corporation (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.”

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..

Investors began to learn the truth on Feb. 13 2024, when QuidelOrtho 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.

Then, 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.”

Most recently, on Apr. 2, 2024, QuidelOrtho announced that it withdrew its submission for the Savanna RVP4 Test because recent data failed to meet expectations.

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.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the QDEL securities class-action case about?

We are investigating whether QuidelOrtho may have engaged in improper channel-stuffing and about the likelihood of FDA approval for the Savanna test.

WHAT SHOULD I DO?

I worked at QDEL. What should I do?

If you were an employee of QDEL, you may have valuable information that could be relevant to the lawsuit. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in QDEL during the relevant period specified in the class-action lawsuit, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any QDEL investor participate?

In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.