New York, New York--(Newsfile Corp. - June 18, 2020) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Chembio Diagnostics, Inc. (NASDAQ: CEMI) ("Chembio" or the "Company") of the August 17, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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If you invested in Chembio stock or options between April 1, 2020 and June 16, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/CEMI. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased Chembio common stock between April 1, 2020 and June 16, 2020 (the "Class Period"). The case, Chernysh v. Chembio Diagnostics, Inc. et al., No. 20-cv-02706 was filed on June 18, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws. Throughout the Class Period, Defendants represented that its DPP COVID-19 serological POC test for the detection of IgM and IgG antibodies aided in determining current or past exposure to the COVID-19 virus, that its test provides high sensitivity and specificity, and was 100% accurate.
On June 16, 2020, after the market closed, the U.S. Food and Drug Administration ("FDA") issued a press release disclosing that it had revoked the Company's Emergency Use Authorization ("EUA") for the Company's DPP COVID-19 IgM/IgG System "due to performance concerns with the accuracy of the test" and because "data submitted by Chembio as well as an independent evaluation of the Chembio test at NCI showed that this test generates a higher than expected rate of false results and higher than that reflected in the authorized labeling for the device."
On this news, Chembio's share price fell from $9.93 per share on June 16, 2020 to a closing price of $3.89 on June 17, 2020: a $6.04 or a 60.83% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Chembio's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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