Court dismisses lawsuit with prejudice,
finding claims brought by David J.
Kovacs to be without merit
TUCSON,
Ariz., Feb. 4, 2025 /PRNewswire/ -- AudioEye,
Inc. (Nasdaq: AEYE) ("AudioEye" or the "Company"),
the industry-leading digital accessibility company, today announced
that the Supreme Court of the State of
New York has dismissed in full the lawsuit brought by former
employee David J. Kovacs against the
Company, CEO David Moradi, and
Chairman of the Board Carr Bettis.
The lawsuit, which included claims of stock manipulation and
retaliation under New York Labor Law and intentional infliction of
emotional distress, was dismissed with prejudice, meaning the
claims cannot be refiled. Additionally, the plaintiff voluntarily
abandoned claims of defamation and tortious interference before the
Court's ruling.
"We are pleased with the Court's decision to dismiss this
baseless lawsuit in its entirety," said David Moradi, CEO of AudioEye. "It was clear
from the start that these claims were brought forward by a
disgruntled former employee with personal motives that had nothing
to do with the facts. The Court's ruling reaffirms what we have
known—these claims had no merit."
Pattern of Misconduct and Erratic Behavior
AudioEye had previously filed a lawsuit in Florida against David
J. Kovacs in April 2024, suing
for defamation and other causes of action. AudioEye's complaint
states, "after discovering [Mr. Kovacs] was exhibiting a pattern of
irrational, erratic, and manipulative behavior while maligning and
defaming AudioEye and its executives, AudioEye terminated him for
cause. By this time, AudioEye also had come to learn that Kovacs
was a fraud and had consistently misrepresented his
accomplishments and experience. Additionally, Kovacs threatened to
initiate a short and distort scheme against AudioEye and its stock,
in which he would enlist powerful Wall Street investors to make
false statements about the Company, which would drive the stock to
zero."
Mr. Kovacs moved to dismiss AudioEye's action against him in
Florida, but the Court denied his
motion. AudioEye is continuing to pursue its claims.
About AudioEye
AudioEye exists to ensure the
digital future we build is accessible. The gold standard for
digital accessibility, AudioEye's comprehensive solution combines
industry-leading AI automation technology with expert fixes
informed by the disability community. This powerful combination
delivers industry-leading protection, ensuring businesses of all
sizes — including over 126,000 customers like Samsung, Calvin Klein, and Samsonite — meet and exceed
compliance standards. With 23 US patents, AudioEye's solution
includes 24/7 accessibility monitoring, automated WCAG issue
testing and fixes, expert testing, developer tools, and legal
protection, empowering organizations to confidently create
accessible digital experiences for all.
Media Contact
Sierra
Thomas
AudioEye PR
sierra.thomas@audioeye.com
Investor Contact
Tom
Colton
Gateway Group, Inc.
AEYE@gateway-grp.com
949-574-3860
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SOURCE AudioEye, Inc.
