BOSTON, MA / ACCESSWIRE / June 18, 2020 / Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, announces that a class-action lawsuit on behalf of shareholders has been filed against Chembio Diagnostics, Inc. (CEMI) and certain of its officers for securities fraud. The lead plaintiff deadline is August 17, 2020. Investors who purchased Chembio shares between April 1, 2020 to June 16, 2020 are encouraged to contact the firm for a free case evaluation.
In April 2020, Chembio's Dual Path Platform COVID-19 antibody test was among the first such tests to be granted Emergency Use Authorization by the U.S. Food and Drug Administration. However, after the markets closed on June 16, 2020, the FDA issued a press release in which it announced that it had revoked the Emergency Use Authorization for Chembio's Dual Path Platform antibody test "due to performance concerns with the accuracy of the test," a determination that its "benefits no longer outweigh its risks," and "a higher than expected rate of false results." On this news, the price of Chembio stock fell $6.04 per share, approximately 61%, to close at $3.89 per share on June 17, 2020.
The lawsuit, filed in the Eastern District of New York, also alleges that on May 11, 2020, the Defendants took advantage of Chembio's inflated stock price, closing a public offering of approximately 2.6 million shares of Chembio stock at $11.75 per share for gross proceeds of approximately $30.8 million.
If you purchased or acquired shares of Chembio and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at firstname.lastname@example.org, or at https://shareholder.law/cases/?case=chembio.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country's financial markets. The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm's lawyers have recovered billions of dollars for its clients.
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SOURCE: Block & Leviton LLP
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