Shareholder rights law firm Robbins LLP announces that a purchaser of Co-Diagnostics Inc. (NASDAQ: CODX) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between February 25, 2020 and May 15, 2020. Co-Diagnostics is a molecular diagnostics company that intends to manufacture and sell reagents used for diagnostic tests.
If you suffered a loss as a result of Co-Diagnostics' misconduct, click here.
Co-Diagnostics Inc. (CODX) Accused of Misleading Shareholders
According to the complaint, on February 24, 2020, Co-Diagnostics announced that it had received regulatory clearance to sell its tests in the European Community and by April 6, 2020, the Company announced that it had received emergency use authorization for its tests from the U.S. Food and Drug Administration ("FDA"). As time progressed, Co-Diagnostics consistently made unequivocal statements touting that its COVID-19 tests were 100% accurate. As a result of its purported success, Co-Diagnostics' stock, which had previously almost been delisted from NASDAQ for consistently trading under a dollar, soared to a price of $29.72 per share and a market capitalization of over $800 million. However, on May 14, 2020, after Co-Diagnostics maintained its statements about the success of its test in its first quarter 2020 results, public reports began circulating questioning Co-Diagnostics' claims of 100% accuracy because the Company was reluctant to participate in U.S.-based testing to verify its claims. Later that evening, the U.S. FDA announced publicly that no COVID-19 test is 100% accurate. On this news, the stock declined 42% from a high of $29.72 per share on May 14, 2020, to close at $17.07 per share on May 15, 2020.
Co-Diagnostics Inc. (CODX) Shareholders Have Legal Options
Want to be notified if a class action against Co-Diagnostics settles? Want to receive free alerts about companies engaged in wrongdoing? Sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.