SCWorx Corp. (WORX) Accused of Misleading Shareholders
On April 13, 2020, SCWorx announced it had received a committed purchase order of 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.” On this news, SCWorx’s share price experienced an impressive 81% increase, closing at $12.02 per share. Then, on April 17, 2020, Hindenburg Research issued a report doubting the validity of the deal, calling it “completely bogus” and stating the test supplier was “laden with red flags” and that the CEO allegedly “falsified his medical credentials.” On this news, SCWorx’s share price fell $1.19 per share, or more than 17%, over three consecutive trading sessions to close at $5.76 per share on April 21, 2020. Consequently, on April 22, 2020, the SEC halted trading of the Company’s stock. Trading of the stock has remained halted since.
