The complaint for the class action alleges that Co-Diagnostics made misstatements about their COVID-19 diagnostic test to inflate the company’s stock price “while the officers and directors exercised low price options and dumped their stock into the open market.”
The alleged fraudulent misstatements and “disregard for the basic scientific principles that make their falsity of their statements clear in retrospect” caused the stock price to drop and investors significant damage.
Co-Diagnostics COVID-19 Test Alleged To Give False Negative
On May 14, 2020 it was reported in an article in The Salt Lake Tribune that Co-Diagnostics’ tests require more of the COVID-19 virus to trigger a positive result than most other coronavirus tests approved in the U.S. That means that the Co-Diagnostics tests likely incorrectly indicated to thousands of people that they did not have the infection.
The article also reported that TestUtah.com, which used Co-Diagnostics tests, had declined to join other Utah labs to confirm each other’s accuracy. The day after the article came out, Co-Diagnostics stock fell significantly, damaging investors.
The deadline to apply to be lead plaintiff, or class representative, is August 17, 2020.
Co-Diagnostics IPO
Co-Diagnostics held its initial public offering (IPO) in 2017. The offering raised more than $7 million. WallachBeth Capital, LLC and Network1 Financial Securities, Inc. were the co-book running managers for the offering. ViewTrade Securities, Inc. was the co-manager.
Co-Diagnostics is not the first company to claim to have a reliable COVID-19 test that later turned out not to be. Silver Law Group investigated Aytu Biosciences, which had a licensing agreement for a Chinese-made COVID-19 antibody test that the FDA called unreliable.
Contact Silver Law Group To Discuss Your Options For Recovery Today
If you suffered losses with Co-Diagnostics, Inc. (CODX), we’d like to hear from you. Contact us to discuss your options to recover losses.
Silver Law Group’s nationally-recognized attorneys represent investors in class actions against issuers in state or federal court, and in securities arbitration claims against brokerage firms for stockbroker misconduct.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact Scott Silver for a no-cost consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.