XpresSpa (XSPA) Stock Gains on Announcement of Lawsuit Dissmisal

XpresSpa XSPA Stock News

XpresSpa Group Inc (NASDAQ: XSPA) is having a relatively strong start to the trading session this morning, and for good reason. The company recently announced the dismissal of a lawsuit. However, there’s a lot more to be excited about here.

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XSPA Stock Gains on Lawsuit Dismissal

In a press release issued late yesterday, XpresSpa said that a lawsuit has been dismissed by a Manhattan federal court. The suit was filed by Moreton and Marisol Binn against the company and some of its current and former directors.

The lawsuit was dismissed on the basis that the Binns failed to make a pre-suit demand on XSPA and are not adequate representatives of the company’s shareholders for the purpose of a derivative lawsuit. Finally, the Binns failed to state any plausible claims for relief with respect to any other claims.

In a statement, Bruce Bernstein, Chairman at XSPA, had the following to offer:

We are very happy with the court’s decision. None of the lawsuits brought by the Binns or their lawyers against XpresSpa, its directors and certain investors had any factual or legal merit, and now all three of them have been dismissed by the courts. We are glad to put this wasteful distraction behind us and vindicated that all three lawsuits were dismissed at an early stage.

There’s More to Be Excited About

I’ve written articles in length about the potential of XSPA as an investment. So, I’m going to give a few bullets here. For a more consice argument surrounding the company, click here.

  • The company is working on plans to convert existing airport real estate into COVID-19 testing centers.
  • Even if a vaccine is available this year, it will take a long time for the masses to get it. Moreover, with this type of virus, vaccinations may not work as well. COVID-19 testing demand is likely to continue even after the commercialization of a vaccine.
  • A pilot is taking place at JFK.
  • If the pilot goes well, not only workers, but travelers will have access to testing at the airport. Moreover, other airports are likely to follow in the COVID-19 testing footsteps.

The bottom line here is that the long-term opportunity of the COVID-19 testing plans is hard to ignore, making XSPA a stock to watch closely!

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