Chembio Diagnostics, Inc. Class Action Lawsuit
- Company Name
- Chembio Diagnostics, Inc.
- Stock Symbol
- Class Period
- April 1, 2020 to June 16, 2020
- Motion Deadline
- August 17, 2020
- Eastern District of New York
The Chembio Diagnostics, Inc. class action lawsuit charges Chembio and certain of its officers and/or directors with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Chembio common stock between April 1, 2020 and June 16, 2020, inclusive (the “Class Period”). The Chembio class action lawsuit was commenced on June 18, 2020 in the Eastern District of New York and is captioned Chernysh v. Chembio Diagnostics, Inc., No. 20-cv-02706.
Chembio purports to be a leading point-of-care (“POC”) diagnostics company focused on detecting and diagnosing infectious diseases. Chembio claims its patented Dual Path Platform (“DPP”), which uses a small drop of blood from the fingertip, provides high-quality, cost-effective test results in approximately 15 minutes.
Throughout the Class Period, defendants represented that Chembio’s DPP COVID-19 serological POC test for the detection of IgM and IgG antibodies aided in determining current or past exposure to the COVID-19 virus, that the test provided high sensitivity and specificity, and that the test was 100% accurate. However, as the Chembio class action lawsuit alleges, the defendants made false and/or misleading statements and/or failed to disclose that Chembio’s DPP COVID-19 test did not provide high-quality results and that there were material performance concerns with the accuracy of Chembio’s DPP COVID-19 test.
On June 16, 2020, the FDA issued a press release disclosing that it had revoked Chembio’s Emergency Use Authorization (“EUA”) for Chembio’s DPP COVID-19 IgM/IgG System “due to performance concerns with the accuracy of the test.” Specifically, as set forth in the FDA’s June 16, 2020 letter to Chembio, Chembio’s DPP COVID-19 test was generating a higher than expected rate of false results and higher than that reflected in the authorized labeling for the device and was not effective in detecting antibodies against SARS-CoV-2. Indeed, the FDA determined that based on the data Chembio submitted in support of its EUA, it was not reasonable to believe that the test would be effective in detecting antibodies against SARS-CoV-2 and that, as a result, there was a material risk to the public’s health from the false test results. On this news, the price of Chembio stock declined more than 60%.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Chembio common stock during the Class Period to seek appointment as lead plaintiff in the Chembio class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Chembio class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Chembio class action lawsuit. An investor’s ability to share in any potential future recovery of the Chembio class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Chembio class action lawsuit or have questions concerning your rights regarding the Chembio class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Chembio securities class action lawsuit must be filed with the court no later than August 17, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.