LOS ANGELES--(BUSINESS WIRE)--The Schall Law Firm, a national shareholder rights litigation firm, announces the filing of a class action lawsuit against Chembio Diagnostics, Inc. (“Chembio” or “the Company”) (NASDAQ: CEMI) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company's securities between April 1, 2020 and June 16, 2020, inclusive (the ''Class Period''), are encouraged to contact the firm before August 17, 2020.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 1880 Century Park East, Suite 404, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at email@example.com.
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Chembio’s COVID-19 antibody test was among the first to be granted Emergency Use Authorization (EUA) by the FDA in April. The FDA revoked the Company’s EUA on June 17, 2020, based on concerns of test accuracy. According to the FDA, 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.” Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Chembio, investors suffered damages.
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