Lawsuit filed for Investors in shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI)

The Shareholders Foundation announced that an investor, who purchased shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI), filed a lawsuit over alleged violations of Federal Securities Laws by Chembio Diagnostics, Inc.

Investors who purchased shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) have certain options and for certain investors are short and strict deadlines running. Deadline: August 17, 2020. NASDAQ: CEMI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

In April 2020, Chembio Diagnostics, Inc’s Dual Path Platform (“DPP”) COVID-19 antibody test was among the first such tests to be granted Emergency Use Authorization (“EUA”) by the U.S. Food and Drug Administration (“FDA”).

The plaintiff alleggs that Defendants represented that the Company’s Dual Path Platform (“DPP”) COVID-19 serological point-of-care test for the detection of IgM and IgG antibodies aided in determining current or past exposure to the COVID-19 virus, that its test provides high sensitivity and specificity, and was 100% accurate.

Shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) reached as high as $14.90 per share on April 20, 2020.

The plaintiff claims that on May 11, 2020, Defendants took advantage of Chembio’s inflated stock price, closing a public offering of approximately 2.6 million shares of Chembio stock at $11.75 per share for gross proceeds of approximately $30.8 million.

However, then, on June 16, 2020, after the market closed, the U.S. Food and Drug Administration (“FDA”) issued a press release disclosing that it had revoked the Company’s Emergency Use Authorization (“EUA”) for the Company’s DPP COVID-19 Igm/IgG System “due to performance concerns with the accuracy of the test” and because “data submitted by Chembio as well as an independent evaluation of the Chembio test at NCI showed that this test generates a higher than expected rate of false results and higher than that reflected in the authorized labeling for the device.”
Shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) declined to as low as $3.51 per sahare on June 17, 2020.

The plaintiff claims that between April 1, 2020 and June 16, 2020 the Company failed to disclose that, the Company’s Dual Path Platform (“DPP”) COVID-19 test did not provide high-quality results and there were material performance concerns with the accuracy of the test such that it was not reasonable to believe that the test may be effective in detecting antibodies against SARS-CoV-2; and as a result, there was a material risk to public health from the false test results.

Those who purchased shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.