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Decision Diagnostics Corp. Class Action Lawsuit

13 days left to seek lead plaintiff status

Case Summary

Company Name
Decision Diagnostics Corp.
Stock Symbol
DECN
Class Period
March 3, 2020 to December 17, 2020
Motion Deadline
March 16, 2021
Court
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.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Decision Diagnostics securities during the Class Period to seek appointment as lead plaintiff in the Decision Diagnostics class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Decision Diagnostics class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Decision Diagnostics class action lawsuit.  An investor’s ability to share in any potential future recovery of the Decision Diagnostics class action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Decision Diagnostics class action lawsuit or have questions concerning your rights regarding the Decision Diagnostics class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Decision Diagnostics class action lawsuit must be filed with the court no later than March 16, 2021.

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.

Class Period: March 3, 2020 - December 17, 2020
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