SALT LAKE CITY — Co-Diagnostics, the company sued because of allegations that it falsely claimed its test were "100 percent accurate" has asked the court to dismiss the lawsuit, new court records show.
Gelt Trading, representing investors in the class action lawsuit against Co-Diagnostics, claims that the company's stock prices rose due to the company’s claim that its coronavirus test showed 100% sensitivity in multiple evaluations, “a staggering claim that appeared to set Co-Diagnostics apart from other competitors developing COVID-19 tests,” the lawsuit states.
Because these claims were repeated in various publications, states the lawsuit, the company’s stock continued to rise, reaching an all-time high of $29.72 on May 14, “an extraordinary climb from its $0.8952 year-end 2019 price."
“As a result of this misrepresentation and the influx of taxpayer dollars to Co-Diagnostics, the company’s stock soared — until it crashed,” the lawsuit alleges.
Co-Diagnostics acknowledges that questions were raised in the press about the accuracy of the test, but maintains that it never made misleading claims.
Because of scrutiny raised in the early days of the pandemic, the Silicon Slopes based company is now under Utah Health Department oversight.