Rolnick Kramer Sadighi LLP proudly partners with institutional investor client to prosecute securities fraud claims on behalf of shareholders against company accused of misrepresenting efficacy of Covid-19 antibody tests.

January 21, 2021

RKS is currently representing long-time client Special Situations Funds as co-lead counsel for a class of public investors in the securities of Chembio a point-of-care medical diagnostics company.  SSF's complaint alleges:

  • Numerous federal securities claims against Chembio, as well as the Company's directors, officers and underwriters;
  • Misstatements made during the COVID-19 pandemic about the effectiveness of Chembio's COVID antibody test, referred to as the DPP test;
  • The artificial inflation of Chembio’s stock as a result of these misstatements;
  • And that investors were damaged when the truth was revealed.

Chembio is alleged to have sold more than $30 million of inflated stock directly to the public, while representing in the offering documents that the DPP Test was "100% effective" and touting the Company's FDA "Emergency Use Authorization" to market the Test.  Unbeknownst to investors, however, was at the very same time Chembio knew or should have known that the DPP Test actually did not effectively detect COVID antibodies and that the FDA was planning to revoke the Company's Authorization to sell its DPP Test.  When the truth about the DPP Test was revealed in June 2020, the price of Chembio's stock plummeted, destroying hundreds of millions of shareholder value.

RKS provides strategic, bespoke litigation solutions to the investment management community to deliver outstanding results and increase investment returns.  RKS attorneys are trusted partners to clients with more than $4 trillion AUM, and have decades of experience in value-enhancing litigation, including federal securities matters like the Chembio lawsuit as well as structured finance, creditor and debtholder rights, and valuation and shareholder rights litigation.