Did You Purchase SCWorx Stock Between April 13, 2020 and April 17, 2020?

Apr 30, 2020 | Securities Class Action Archive

SCWorx Corp. Subject of Class Action Lawsuit On Behalf of Purchasers or Acquirers of SCWorx Corp Stock Between April 13, 2010 and April 17, 2020

Kehoe Law Firm, P.C. is investigating securities claims on behalf individuals and entities who purchased, or otherwise acquired, shares of SCWorx Corp. (“SCWorx” or the “Company”) (NASDAQ: WORX) between April 13, 2020 and April 17, 2020, both dates inclusive.

On April 29, 2020, a class action lawsuit was filed in United States District Court, Southern District of New York, against SCWorx on behalf of persons and entities that purchased, or otherwise acquired, SCWorx securities between April 13, 2020 and April 17, 2020, both dates inclusive (the “Class Period”). The lawsuit is pursuing claims against the SCWorx Defendants under the Securities Exchange Act of 1934.

According to the complaint, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the SCWorx Defendants failed to disclose to investors: (1) that SCWorx’s supplier for COVID-19 tests had previously misrepresented its operations; (2) that SCWorx’s buyer was a small company that was unlikely to adequately support the purported volume of orders for COVID-19 tests; (3) that, as a result, the Company’s purchase order for COVID-19 tests had been overstated or entirely fabricated; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

On April 13, 2020, pre-market, SCWorx announced that 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, the share price of ScWorx increased by $9.77, closing at $12.02 per share on April 13, 2020.

On April 17, 2020, Hindenburg Research issued a report doubting the validity of the deal, calling it “completely bogus.” Hindenburg Research alleged that the COVID-19 test supplier that SCWorx is buying from, Promedical, has a CEO “who formerly ran another business accused of defrauding its investors and customers” and “was also alleged to have falsified his medical credentials.” According to the report, Promedical claimed to the FDA and regulators in Australia to be offering COVID-19 test kits manufactured by Wondfo, but Wondfo “disavowed any relationship” and the buyer that SCWorx claimed to have lined up does not appear to be “capable of handling hundreds of millions of dollars in orders.”

On this news, the share price of SCWorx fell $1.19, or more than 17%, over three consecutive trading sessions, closing at $5.76 per share on April 21, 2020, on unusually heavy trading volume.

On April 22, 2020, the SEC halted trading of the Company’s stock.

SCWorx investors who purchased, or otherwise acquired, WORX securities during the Class Period April 13, 2020-April 17, 2020, both dates inclusive, and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.
Kehoe Law Firm, P.C.

 

Protected Health Information Data Breaches Under HHS Investigation

Apr 30, 2020 | Consumer Protection, Employment & Technology Archive

Kehoe Law Firm, P.C. is making individuals aware of the following data breach cases of unsecured protected health information affecting 500 or more individuals currently under investigation by the U.S. Department of Health and Human Services, Office for Civil Rights:
Name of Covered Entity State Covered Entity Type Individuals Affected Breach Submission Date Type of Breach Location of Breached Information
Ascension Eastwood Clinics MI Healthcare Provider 999 04/23/2020 Unauthorized Access/Disclosure Email
Psychiatric Associates of North Carolina, Professional Association NC Healthcare Provider 1081 04/20/2020 Unauthorized Access/Disclosure Email
Beaumont Health MI Healthcare Provider 112211 04/17/2020 Hacking/IT Incident Email
Advocate Aurora Health WI Healthcare Provider 27137 04/16/2020 Hacking/IT Incident Email, Network Server
Medica Insurance Company MN Health Plan 802 04/15/2020 Unauthorized Access/Disclosure Paper/Films
Medica Health Plans MN Health Plan 1710 04/15/2020 Unauthorized Access/Disclosure Paper/Films
Hartford HealthCare CT Healthcare Provider 2651 04/13/2020 Hacking/IT Incident Email
Doctors Community Medical Center MD Healthcare Provider 18481 04/13/2020 Hacking/IT Incident Email
Arizona Endocrinology Center AZ Healthcare Provider 74122 04/10/2020 Unauthorized Access/Disclosure Electronic Medical Record
Corpus Christi Rehabilitation Hospital TX Healthcare Provider 507 04/10/2020 Hacking/IT Incident Email
Beacon Health Options, Inc. MA Business Associate 6723 04/10/2020 Loss Other Portable Electronic Device
Rehabilitation Hospital of Southern New Mexico NM Healthcare Provider 1843 04/10/2020 Hacking/IT Incident Email
UPMC Altoona Regional Health Services PA Healthcare Provider 13911 04/10/2020 Hacking/IT Incident Email
Brandywine Counseling & Community Services, Inc DE Healthcare Provider 4262 04/10/2020 Hacking/IT Incident Network Server
Colorado Department of Human Services, Office of Behavioral Health CO Healthcare Provider 8132 04/07/2020 Unauthorized Access/Disclosure Network Server
Healthcare Resource Group, Inc. WA Business Associate 3009 04/07/2020 Hacking/IT Incident Email
Andrews Braces NV Healthcare Provider 16622 04/07/2020 Hacking/IT Incident Network Server
Doctors HealthCare Plans, Inc. FL Health Plan 500 04/07/2020 Hacking/IT Incident Email
Child, Family and Community Services, Inc. CA Health Plan 1658 04/03/2020 Theft Laptop, Other Portable Electronic Device
University of Utah UT Healthcare Provider 5000 04/03/2020 Hacking/IT Incident Email
Confidio, LLC MD Business Associate 3600 03/31/2020 Hacking/IT Incident Email
Washington University School of Medicine MO Healthcare Provider 14795 03/31/2020 Hacking/IT Incident Email
Affordacare Urgent Care Clinics TX Healthcare Provider 57411 03/31/2020 Hacking/IT Incident Network Server
University of Minnesota Physicians MN Healthcare Provider 683 03/30/2020 Hacking/IT Incident Email
Brandywine Urology Consultants, PA DE Healthcare Provider 131825 03/27/2020 Hacking/IT Incident Desktop Computer, Email, Laptop, Network Server
Crossroads Technologies, Inc. PA Business Associate 897 03/27/2020 Hacking/IT Incident Network Server
Tryon Medical Partners, PLLC NC Healthcare Provider 701 03/27/2020 Unauthorized Access/Disclosure Email
Stockdale Radiology CA Healthcare Provider 10700 03/27/2020 Hacking/IT Incident Desktop Computer
David S Daley, DMD AZ Healthcare Provider 1000 03/26/2020 Theft Network Server
New Jersey Department of Human Services NJ Health Plan 2300 03/25/2020 Hacking/IT Incident Network Server
VA Sierra Nevada Health Care System NV Healthcare Provider 702 03/25/2020 Unauthorized Access/Disclosure Paper/Films
Renew Wellness Center, PLLC MT Healthcare Provider 730 03/23/2020 Theft Email, Other Portable Electronic Device
FACKLER FAMILY CHIROPRACTIC, LLC OH Healthcare Provider 1731 03/23/2020 Theft Paper/Films
Health Care Service Corporation IL Health Plan 575 03/23/2020 Unauthorized Access/Disclosure Email
Ambry Genetics Corporation CA Healthcare Provider 232772 03/22/2020 Hacking/IT Incident Email
University of Utah UT Healthcare Provider 3670 03/21/2020 Hacking/IT Incident Email
Georgia Department of Human Services GA Healthcare Clearing House 500 03/20/2020 Loss Paper/Films

Source: Ocrportal.hhs.gov (Accessed 04.30.2020)

NOTE: The U.S. Department of Health and Human Services, Office for Civil Rights, Breach Portal, lists all breaches reported within the last 24 months that are currently under investigation by the Office for Civil Rights.  The data reported herein does not include all cases currently under investigation by the Office for Civil Rights.  Resolved data breach reports and/or reports older than 24 months can be viewed at Ocrportal.hhs.gov. 

Have You Been Impacted by A Data Breach?

If so, please either contact Kehoe Law Firm, P.C. Partner Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], complete the form on the right or send an e-mail to [email protected] for a free, no-obligation case evaluation of your facts to determine whether your privacy rights have been violated and whether there is a basis for a data privacy class action.

Examples of the type of relief sought by data privacy class actions, include, but are not limited to, reimbursement of identity theft losses and of out-of-pocket costs paid by data breach victims for protective measures such as credit monitoring services, credit reports, and credit freezes; compensation for time spent responding to the breach; imposition of credit monitoring services and identity theft insurance, paid for by the defendant company; and improvements to the defendant company’s data security systems.

Data privacy class actions are brought on a contingent-fee basis; thus, plaintiffs and the class members do not pay out-of-pocket attorney’s fees or litigation costs.  Subject to court approval, attorney’s fees and litigation costs are derived from the recovery obtained for the class.

Kehoe Law Firm, P.C.

SEC Has Awarded Over $448 Million To Whistleblowers

Apr 29, 2020 | Archive

SEC’s Award of $18 Million Increases Total Whistleblower Awards To More Than $448 Million, Since Its First Award In 2012

Kehoe Law Firm, P.C. is making individuals aware that the SEC announced an award of more than $18 million to a whistleblower whose significant information prompted an examination that resulted in an important enforcement action. The whistleblower repeatedly reported the problem internally before contacting the SEC.

The SEC has awarded over $448 million to 81 individuals since issuing its first award in 2012.  All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators.  No money has been taken or withheld from harmed investors to pay whistleblower awards.  Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.  Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.

Source: U.S. Securities and Exchange Commission – SEC.gov

Kehoe Law Firm, P.C.

Business Owners, Coronavirus SBA Loans and Scammers

Apr 29, 2020 | Consumer Protection, Employment & Technology Archive

FTC Cautions Business Owners Applying For SBA Loans Through The Paycheck Protection Program or Economic Injury Disaster Loans Program To Be On The Lookout For Scams

Kehoe Law Firm, P.C. is making business owners aware that the FTC has provided guidance to help business owners avoid being scammed into providing sensitive business information, such as bank account numbers, employee Social Security numbers, and even money.

According to the FTC:

DO
DON’T
  • Don’t pay in advance for information. All the information from the SBA is free at sba.gov/coronavirus.
  • Don’t pay in advance for a government loan. You don’t have to pay up front to get an SBA loan.
  • Don’t give your information to someone who calls, emails, or texts you out of the blue. The SBA won’t call unsolicited to find out information about you or your business, or to ask you to apply for a loan. The SBA is not going to send you emails or text messages asking for sensitive information. If you get an email or text like this, delete it. It’s a scam.
  • Don’t apply for a loan without verifying the lender. Only SBA-authorized lenders can provide PPP loans, and other loans may be available through SBA directly. To find an SBA-authorized lender in your area, use this SBA tool.
  • Don’t click on links or reply to emails or text messages from someone you don’t know. If you click on the links, you could download malware to your computer or device or be connected to a scammer or hacker.

Also, the FTC recommends that business owners warn staff to be alert for spoofed emails and bogus calls, and, importantly, if you or your employees spot a scam, please let the FTC know at ftc.gov/complaint.

Source: Federal Trade Commission – FTC.gov

Kehoe Law Firm, P.C.

Have You Held Fluor Stock Continuously Since November 2017?

Apr 27, 2020 | Securities Class Action Archive

Fluor Corporation Shareholder Derivative Action Filed – Breach of Fiduciary Duties, Unjust Enrichment, and Securities Exchange Act Violations Alleged – Kehoe Law Firm, P.C. Investigating Breach of Fiduciary Duty Claims 

Kehoe Law Firm, P.C. is making investors aware that on April 10, 2020, a shareholder derivative action was filed in United States District Court for the District of Delaware seeking to remedy the individual Fluor Corporation Defendants’ breach of fiduciary duties, unjust enrichment, and violations of Section 10(b) of the Securities Exchange Act of 1934 that occurred between November 2, 2017 to the present (the “Relevant Period”) and which have caused substantial harm to Fluor Corporation (NYSE: FLR).

According to the complaint, the Fluor Corporation Defendants,

[t]hroughout the Relevant Period, . . . inflated the Company’s revenue and earnings by improperly recognizing revenue on sixteen (16) separate projects. Once awarded a contract to perform work on a project, the Company would routinely submit ‘change forms’ to its clients in which the Company would request additional funds to cover its cost overruns that resulted from ‘unforeseen circumstances,’ funds which the client was not contractually obligated to pay. When the Company determined, through its own assessment, that it was ‘likely’ that the client would accept their change order, the Company would book the additional revenue. This was contrary to the assurances to the market that the Company would only recognize revenue from its submission of these change orders if it determined that ‘recovery of incurred costs is probable and the amounts can be reliably estimated.’

Defendants had been secretly utilizing change orders, among other tactics, to improperly inflate the Company’s revenue and earnings by recognizing additional revenue on its contracts despite having no reasonable basis to do so.

Have You Held Fluor Corporation Stock Continuously Since November 2017?

Fluor Corporation investors who have owned FLR shares continuously since November 2017 are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq, (215) 792-6676, Ext. 801, [email protected], to discuss potential legal claims.

Kehoe Law Firm, P.C.