Decision Diagnostics Corp. Class Action Lawsuit
- Company Name
- Decision Diagnostics Corp.
- Stock Symbol
- Class Period
- March 3, 2020 to December 17, 2020
- Central District of California
The Decision Diagnostics Corp. class action lawsuit charges Decision Diagnostics and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Decision Diagnostics securities between March 3, 2020 and December 17, 2020, inclusive (the “Class Period”). The Decision Diagnostics class action lawsuit was commenced on January 15, 2021 in the Central District of California and is captioned Sanchez v. Decision Diagnostics Corp., No. 21-cv-00418.
Decision Diagnostics purportedly offers, among other products and services, prescription and non-prescription diagnostics and home testing products. From March 2020 to at least June 2020, defendants claimed that Decision Diagnostics had developed a finger-prick blood test that could detect COVID-19 in less than one minute. Defendants also made various representations regarding Decision Diagnostics’ progress towards achieving U.S. Food and Drug Administration (“FDA”) emergency use authorization (“EUA”) for this purported COVID-19 finger-prick blood test.
The Decision Diagnostics class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Decision Diagnostics had not developed any viable COVID-19 test, much less a test that could detect COVID-19 in less than one minute; (ii) Decision Diagnostics could not meet the FDA’s EUA testing requirements for its purported COVID-19 test; (iii) accordingly, defendants had misrepresented the timeline within which it could realistically bring its COVID-19 test to market; (iv) all the foregoing subjected defendants to an increased risk of regulatory oversight and enforcement; and (v) as a result, defendants’ public statements were materially false and misleading at all relevant times.
On December 17, 2020, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint in federal court against defendants, alleging that they had issued a series of press releases that falsely claimed that Decision Diagnostics had developed a finger-prick blood test that could detect COVID-19 in less than one minute. According to the SEC, from March 2020 to at least June 2020, defendants made false and misleading statements about the existence of Decision Diagnostics’ COVID-19 device and progress towards achieving FDA EUA for that device. As alleged, at the time of these claims, Decision Diagnostics lacked a proven method for detecting the virus and had no physical testing device. The SEC further alleged that the statements created the misleading impression that Decision Diagnostics would soon introduce the COVID-19 test to the market, which led to surges in the price and trading volume of Decision Diagnostics’ stock. On this news, Decision Diagnostics’ common share price fell approximately 60%, damaging investors.
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