Co-Diagnostics, Inc. Wins Dismissal of Class Action Lawsuit

Core Viewpoint - Co-Diagnostics, Inc. achieved a complete dismissal of a securities class action lawsuit, which was a significant legal victory for the company [1][5][6]. Legal Proceedings - The lawsuit was initiated by Gelt Trading, Ltd. on June 15, 2020, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against Co-Diagnostics and certain directors and officers [2]. - The case centered around a May 1, 2020, press release claiming that the Logix Smart® COVID-19 test had "100% sensitivity and 100% specificity," which the plaintiff argued was misleading and caused artificial inflation of the stock price [3]. Court Rulings - BakerHostetler, the legal firm representing Co-Diagnostics, successfully argued for summary judgment, asserting that the plaintiff could not prove any material fact supporting liability for the Section 10(b) claim [4]. - On March 4, 2025, the court granted the defendants' motion to exclude the plaintiff's expert testimony on loss causation and ruled that the plaintiff failed to demonstrate that the May 1 press release caused any losses [5]. Company Outlook - Following the dismissal, Co-Diagnostics expressed optimism about the potential for prevailing in any appeal and aims to focus on its mission of enhancing the availability of high-quality molecular diagnostics globally [6]. Company Profile - Co-Diagnostics, Inc. is a molecular diagnostics company based in Utah, specializing in the development, manufacturing, and marketing of advanced diagnostic technologies, particularly those involving nucleic acid detection and analysis [7].