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Written by 8:55 pm Blog, Current Investigations

Lucira Health Inc. Files Chapter 11 Bankruptcy 

Lucira Health Inc. Files Chapter 11 Bankruptcy, featured by top securities fraud attorneys, the White Law Group

Securities Investigation: Lucira Health Inc. 

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Lucira Health Inc to investors. 

Lucira Health Inc., a medical technology company has reportedly filed for chapter 11 bankruptcy protection and plans to pursue a sale of its business under Section 363, according to reports yesterday. 

Lucira Health, focused on the development and commercialization of “transformative and innovative” infectious disease test kits, closed its upsized initial public offering just two years ago, in February 2021. 10,350,000 shares of its common stock was offered to the public at $17.00 per share. The gross proceeds to Lucira from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, were $175.95 million, according to a press release. 

Yesterday, Lucira Health (LHDX) shares fell 21% after hours to 18 cents and was down  -38.49%. 

According to a company press release, the company said that while it had rapid growth due to the COVID-19 pandemic it was reportedly hurt by the “protracted” regulatory process for a combination COVID-19 and flu test kit.  

As restrictions eased in 2022, Lucira said it also saw lower COVID-19 test demand. 

Recovery of Investment Losses in LHDX 

The problem with pharmaceutical and biotech investments is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy testing trials that yield specific data. If the expected data or end points are not met, that could be bad news for investors.    

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.    

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment, they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA provides an arbitration forum for investors to resolve such disputes.    

Recovery of Investment Losses    

If you are concerned about your investment in Lucira Health Inc., you may be able to file a complaint against your brokerage firm. Please contact the securities attorneys at The White Law Group at 1-888-637-5510 for a free consultation.     

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors throughout the country in claims against their brokerage firm.    

For more information on the firm and its representation of investors, visit WhiteSecuritiesLaw.com.    




Tags: , , , , , Last modified: February 23, 2023