Following the alleged events of April 2020, as outlined by DOJ, the SEC ordered that trading of SCWorx shares be temporarily suspended between April 21, 2020, and May 5, 2020, because of questions and concerns regarding the adequacy and accuracy of publicly available information in the marketplace.

“We allege that the defendants engaged in an age-old fraud—lying about their business prospects—to capitalize opportunistically on the COVID pandemic,” SEC Chair Gary Genslersaidin a news release. “As the challenges from the pandemic continue, investors should be vigilant about COVID-related claims. The SEC will continue to root out fraud and prosecute those who attempt to use the surge of uncertainty from the pandemic to defraud the investing public.”

In April, the company confirmed its agreement to settle with the SEC, and Tim Hannibal, who took the job of CEO after Schessel, issued the following statement:

“Since I accepted the CEO role on June 1, 2021, it has been a top priority to resolve legal issues stemming from the April 13, 2020 press release. It is in the best interest of the Company and its shareholders and customers that all of our focus and funds be on our future growth and not prior legal issues or legal costs. … The company fully cooperated with the SEC’s investigation and believes the settlement is in the best interest of the company. SCWorx takes its regulatory obligations seriously, and the integrity of the company, its management and board of directors is of paramount importance.

“SCWorx provides critical and high-quality data and software solutions to hospitals and it is very important that these issues from 2020 are put behind us, as they do not in any way reflect on the quality of our product, integrity of our company or the hard work of our employees.”