New York court dismisses lawsuit against AudioEye

TUCSON, Ariz. - The Supreme Court of the State of New York has dismissed a lawsuit against AudioEye, Inc. (NASDAQ: NASDAQ:AEYE), a leader in digital accessibility solutions, and its top executives, CEO David Moradi and Chairman Carr Bettis. The suit, filed by former employee David J. Kovacs, alleged stock manipulation, retaliation, and emotional distress, but was rejected with prejudice, barring re-filing of the claims. The company, currently valued at $229 million, has shown impressive gross profit margins of 79% in recent quarters.

Kovacs also withdrew his accusations of defamation and tortious interference prior to the court’s decision. "We are pleased with the Court’s decision to dismiss this baseless lawsuit in its entirety," Moradi stated, attributing the allegations to a disgruntled ex-employee’s personal vendetta, unrelated to factual evidence.

In a separate but related case, AudioEye had previously initiated legal action against Kovacs in Florida in April 2024, claiming defamation among other charges. According to AudioEye, Kovacs demonstrated erratic behavior and threatened a "short and distort" scheme to manipulate the company’s stock price. His motion to dismiss the Florida case was denied, and AudioEye continues to pursue its allegations.

This news comes as AudioEye maintains its commitment to digital accessibility, boasting an extensive clientele including Samsung (KS:005930), Calvin Klein, and Samsonite. The company’s technology, backed by 23 US patents, offers a blend of AI automation and expert intervention to ensure compliance with accessibility standards.

The information in this article is based on a press release statement.

In other recent news, AudioEye, a digital accessibility solutions provider, has been making headlines with a series of significant developments. The company recently announced a share repurchase program, with the board authorizing the buyback of up to $12.5 million of its common stock. The repurchases are expected to be completed by January 2027 and will be financed through the company’s working capital, cash generated from operations, and potential borrowing proceeds.

Additionally, AudioEye reported a record revenue of $8.9 million for the third quarter of 2024, along with an impressive adjusted EBITDA of $2 million. The company projects its revenues for the fourth quarter of 2024 to be in the range of $9.7 million to $9.8 million.

In the realm of analyst ratings, Needham initiated coverage on AudioEye with a Buy rating, while H.C. Wainwright maintained a Buy rating and upgraded the price target to $37.00. These ratings reflect the companies’ confidence in AudioEye’s market leadership and the integration of artificial intelligence.

Moreover, AudioEye has announced a secondary offering of its shares, priced at $24.00 each. The offering, led by Needham and supported by Roth Capital Partners (WA:CPAP), is expected to strengthen the company’s balance sheet, providing flexibility for potential mergers and acquisitions. Notably, the company’s recent acquisition of ADA Site Compliance and strategic partnerships with Finalsite and CivicPlus are expected to significantly boost revenue growth. These are recent developments that have unfolded in the company.

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