#USA #Tucson #Digital Accessibility #AudioEye #David Moradi

Background on the Lawsuit

On February 4, 2025, AudioEye, Inc. (Nasdaq: AEYE), a prominent digital accessibility firm, reported a significant legal victory. The Supreme Court of New York dismissed a lawsuit lodged against the company and its CEO, David Moradi, by former employee David J. Kovacs. The lawsuit aimed to levy accusations of stock manipulation and retaliation under New York’s Labor Law, alongside claims of emotional distress. The Court’s dismissal occurs with prejudice, meaning that the claims cannot be refiled in the future.

Court Ruling Details

The lawsuit was dismissed entirely, and crucially, Kovacs voluntarily abandoned additional claims tied to defamation and tortious interference prior to the Court's ruling. David Moradi publicly expressed satisfaction with the Court’s decision, emphasizing that the claims made were unfounded and largely motivated by personal grievances stemming from Kovacs’ dismissal from the company. Moradi stated, "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."

AudioEye's Preemptive Legal Action

Prior to this dismissal, AudioEye initiated its own legal action against Kovacs in Florida back in April 2024, claiming defamation among other allegations. AudioEye's complaint highlighted Kovacs' history of irrational and manipulative conduct, which culminated in his position being terminated for cause. The complaint outlined a disturbing pattern of behavior that included false misrepresentations of his qualifications and threats to undermine AudioEye’s stock value through malicious rumors with the involvement of influential investors.

Kovacs had attempted to thwart AudioEye’s suit by filing a motion to dismiss, but the Court denied this request, allowing AudioEye to continue pursuing its claims against him. This context illustrates the turbulent circumstances surrounding the former employee, highlighting issues that go beyond a mere workplace dispute.

AudioEye’s Commitment to Accessibility

AudioEye has built its reputation as a leader in digital accessibility, dedicated to ensuring that digital environments are usable and accessible for everyone, including individuals with disabilities. The company offers a comprehensive suite of services that combines advanced AI technology with expert human oversight to help organizations comply with accessibility standards. With over 126,000 clients—including major brands like Samsung and Calvin Klein—AudioEye is striving to reshape how digital accessibility is perceived and implemented across various sectors.

CEO David Moradi has repeatedly emphasized the significance of accessibility, stating, "Our mission is to ensure that the digital future we’re creating serves everyone. Positive outcomes from the Court's decisions will enable us to focus on our core objectives and maintain our commitment to accessibility." As a company holding 23 U.S. patents, AudioEye is poised to continue leading the industry in innovation and compliance assurance.

Looking Forward

With the lawsuit dismissal behind them, AudioEye and Moradi can now redirect their focus on future growth and innovation in the digital accessibility space. The company remains steadfast in its mission, aiming to provide businesses with the tools necessary to create a more inclusive online environment. As they navigate the complexities of the digital landscape, the recent legal outcomes will undoubtedly play a role in enhancing stakeholder confidence and supporting continued collaboration with a diverse clientele. This victory will also help bolster AudioEye's strategic positioning as the leading advocate for accessibility compliance, setting a benchmark for others in the industry to aspire to.