San Diego, CA -- (SBWIRE) -- 06/29/2020 -- An investor, who purchased shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI), filed a lawsuit over alleged violations of Federal Securities Laws by Chembio Diagnostics, Inc.

Investors who purchased shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) have certain options and for certain investors are short and strict deadlines running. Deadline: August 17, 2020. NASDAQ: CEMI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Hauppauge, NY based Chembio Diagnostics, Inc., together with its subsidiaries, develops, manufactures, and commercializes point-of-care (POC) diagnostic tests that are used to detect or diagnose diseases. Shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) declined from $11.50 per share in August 2018 to as low as $2.25 per share on March 15, 2020.

In April 2020, Chembio Diagnostics, Inc's Dual Path Platform ("DPP") COVID-19 antibody test was among the first such tests to be granted Emergency Use Authorization ("EUA") by the U.S. Food and Drug Administration ("FDA").

The plaintiff alleggs that Defendants represented that the Company's Dual Path Platform ("DPP") COVID-19 serological point-of-care test for the detection of IgM and IgG antibodies aided in determining current or past exposure to the COVID-19 virus, that its test provides high sensitivity and specificity, and was 100% accurate.

Shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) reached as high as $14.90 per share on April 20, 2020.

The plaintiff claims that on May 11, 2020, Defendants took advantage of Chembio's inflated stock price, closing a public offering of approximately 2.6 million shares of Chembio stock at $11.75 per share for gross proceeds of approximately $30.8 million.

However, then, on June 16, 2020, after the market closed, the U.S. Food and Drug Administration ("FDA") issued a press release disclosing that it had revoked the Company's Emergency Use Authorization ("EUA") for the Company's DPP COVID-19 Igm/IgG System "due to performance concerns with the accuracy of the test" and because "data submitted by Chembio as well as an independent evaluation of the Chembio test at NCI showed that this test generates a higher than expected rate of false results and higher than that reflected in the authorized labeling for the device."

Shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) declined to as low as $3.51 per sahare on June 17, 2020.

The plaintiff claims that between April 1, 2020 and June 16, 2020 the Company failed to disclose that, the Company's Dual Path Platform ("DPP") COVID-19 test did not provide high-quality results and there were material performance concerns with the accuracy of the test such that it was not reasonable to believe that the test may be effective in detecting antibodies against SARS-CoV-2; and as a result, there was a material risk to public health from the false test results.

Those who purchased shares of Chembio Diagnostics, Inc. (NASDAQ: CEMI) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com