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District Court Dismisses Shareholders' Lawsuit Against Accelerate Diagnostics

NEW YORK (GenomeWeb) – Accelerate Diagnostics said today that the US District Court for the District of Arizona has granted the company's motion to dismiss a class-action lawsuit filed against it last year.

The lawsuit was filed by plaintiff Brian Rapp in March 2015 on behalf of all persons or entities that purchased securities in the company over an approximately year-long period, and alleged that the company had made false and misleading statements to investors by failing to disclose certain information about its rapid diagnostic platform.

In granting the company's motion today, the court ordered that the action be dismissed with prejudice in its entirety, Accelerate said.

"This was a case that should never have been brought and was utterly without merit," Steve Schatz of Wilson Sonsini, which represented Accelerate Diagnostics, said in a statement.

Accelerate's current flagship system, Accelerate ID/AST, combines gel electro-filtration, fluorescent in situ hybridization, high-speed microscopy, and advanced algorithms to identify microbiological agents in about 90 minutes and antibiotic susceptibility approximately five hours later, according to the company's website.

The system and its first test, the ID/AST Blood Culture Assay, have received CE-IVD marking, and the company has initiated studies to support a submission to the US Food and Drug Administration.

In Friday afternoon trading on Nasdaq, Accelerate's shares were up nearly 8 percent to $15.25.