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:
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.
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