We are investigating Chembio Diagnostics, Inc. (CEMI) (“Chembio” or the “Company”) for potential violations of the federal securities laws.
In April 2020, Chembio’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”). Then, on June 17, 2020, pre-market, news outlets reported that the FDA had revoked the EUA for Chembio’s DPP antibody test, reportedly citing performance concerns with the test’s accuracy, a determination that its “benefits no longer outweigh its risks”, and “a higher than expected rate of false results.” On this news, Chembio’s stock price fell $6.04 per share, or 60.83%, to close at $3.89 per share June 17, 2020.