The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Chembio Diagnostics, Inc. (NASDAQ: CEMI) who purchased shares between April 1, 2020 and June 16, 2020. The action, which was filed in the United States District Court for the Eastern District of New York, alleges that the Company violated federal securities laws.
In particular, the Chembio lawsuit alleges that defendants engaged in a scheme to deceive the market and a course of conduct that artificially inflated Chembio’s stock price and operated as a fraud or deceit by misrepresenting the efficacy of the Company’s Dual Path Platform ("DPP") COVID-19 test. Defendants allegedly achieved this by making false statements about Chembio’s DPP COVID-19 test, although they knew or at least recklessly disregarded that there were material performance concerns with the test. When defendants’ prior misrepresentations were disclosed and became apparent to the market, the price of Chembio stock fell precipitously as the prior artificial inflation came out of Chembio’s stock price.
Shareholders have until August 17, 2020 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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