WELLINGTON, Fla., June 19, 2020 (GLOBE NEWSWIRE) -- Barbuto & Johansson PA (“BARJO”) and Of Counsel, Neil Rothstein, Esq. (with over 30 years of Securities Class Action Experience including cases against ENRON and Halliburton) remind investors that they have until August 17, 2020 to contact the Firm to learn more about the class action lawsuit filed against Chembio Diagnostics, Inc. (NasdaqGS: CEMI) (“CHEMBIO”) and appointment and qualifications to be considered for the role of lead plaintiff.
The Class Action, Sergey Chernysh v. Chembio Diagnostics, Inc., et al., Case No.: 2:20-cv-02706, was filed in the United States District Court for the Eastern District of New York on behalf of shareholders who purchased CHEMBIO common stock between April 1, 2020 and June 16, 2020, inclusive (the “Class Period”). The lawsuit seeks to recover damages against CHEMBIO and certain officers for alleged violations of federal securities laws.
Specifically, the alleges that throughout the Class Period, defendants misrepresented the efficacy of its DPP COVID-19 test for the detection of antibodies in determining exposure to the COVID-19 virus, thereby engaging in a scheme to deceive the market; and that on May 11, 2020, defendants took advantage of the inflated stock price and closed a public offering of approximately 2.6 million shares of stock for gross proceeds of approximately $30.8 million.
On June 16, 2020, the FDA disclosed that it revoked CHEMBIO’S Emergency Use Authorization (“EUA”) due to performance concerns with the accuracy of the test. Data submitted by CHEMBIO as well as an independent evaluation of the Chembio test at NCI showed that the test generates a higher than expected rate of false results and higher than that reflected in the authorized labeling for the device. The FDA concluded that the risk to public health from the false test results makes EUA revocation appropriate to protect the public health or safety, and that the test could not be distributed. On this news, CHEMBIO’S stock fell over 60% in intraday trading on June 17, 2020.
A class action lawsuit has already been filed. If you purchased CHEMBIO shares between April 1, 2020 and June 16, 2020, and would like to discuss your rights or interests regarding this class action and/or serve as lead plaintiff, you can call attorney Anthony Barbuto at 888-715-2520 (office), text or call at 561-531-8221 (cellular) or email anthony@barjolaw.com. You can also email attorney Neil Rothstein at neil@barjolaw.com.
BARJO follows the principles set forth in the case Berger v. Compaq, 257 F.3d 475 (5th Cir. 2001) which states “[c]lass action lawsuits are intended to serve as a vehicle for capable, committed advocates to pursue the goals of the class members through counsel, not for capable, committed counsel to pursue their own goals through the class members.” BARJO believes strongly that the choice of qualified Lead Plaintiff(s) can have a significant impact on the successful outcome of a case.
Barbuto & Johansson, P.A.
Anthony Barbuto, Esq.
1-888-715-2520
12773 Forest Hill Blvd., 101
Wellington, FL 33414
www.barjolaw.com