Chembio Diagnostics, Inc.
Lead Plaintiff Deadline: 08/17/2020
SUMMARY OF CASE:
A securities class action has been filed against Chembio Diagnostics, Inc. (CEMI) on behalf of investors who purchased Chembio Diagnostics common stock between April 1, 2020 through June 16, 2020. This case has been filed in the USDC – E.D.N.Y.
In April 2020, the Company’s COVID-19 antibody test was one of the first to be granted Emergency Use Authorization (“EUA”) by the U.S. Food and Drug Administration (“FDA”).
Then, on June 17, 2020, before the market opened, the FDA revoked the EUA for Chembio’s Dual Path Platform COVID-19 serology test due to concerns regarding the test’s accuracy. Specifically, the FDA found that the “benefits no longer outweigh its risks” and that “it is not reasonable to believe that the test may be effective” because it “generates a higher than expected rate of false results and higher than that reflected in the authorized labeling for the device.”
On this news, the Company’s share price fell $6.04, or nearly 60%, to close at $3.89 per share on June 17, 2020.