Chembio Diagnostics, Inc.
(NASDAQ CM: CEMI)
Rigrodsky Law, P.A. is investigating potential claims against the officers and directors of Chembio Diagnostics, Inc. ("Chembio" or the "Company") on behalf of stockholders. A class action complaint has been filed against Chembio. The complaint alleges that defendants made material misstatements and omissions in Chembio's Form S-3 Registration Statement and its Prospectus and Prospectus Supplement dated May 7, 2020 (together, the "Registration Statement"). On March 12, 2020, in response to the COVID-19 pandemic, Chembio announced its intention to create a COVID-19 antibody test using its preexisting Dual Path Platform® (“DPP”) technology. On April 14, 2020, the FDA granted an Emergency Use Authorization (“EUA”) for the DPP COVID-19 test. On April 29, 2020, the FDA notified defendants that new information demonstrated that Chembio’s test performance may be “both inconsistent and lower than that described." The complaint alleges that the Registration Statement was negligently prepared and unreasonably failed to disclose: (i) the April 29, 2020 notification from the FDA; (ii) that data generated by independent evaluations by the National Institutes of Health and the National Cancer Institute demonstrated measures of test accuracy below those reported by the Company and acceptable to the FDA; and (iii) that the Company itself had submitted data from Richmond University Medical Center that showed the test performed worse than the Company reported. On June 16, 2020, the FDA announced that it had revoked the EUA. After the Company disclosed the revocation of the EUA, the Company's shares closed at $3.89 per share on June 17, 2020, substantially below the Company’s May 7, 2020 offering price of $11.75 per share.