We are investigating Co-Diagnostics, Inc. (CODX) (“Co-Diagnostics” or the “Company”) for potential violations of the federal securities laws.
On May 14, 2020, The Salt Lake Tribune reported that TestUtah.com, which used tests developed by Co-Diagnostics, “declined to join other major Utah labs in a joint experiment to confirm one another’s quality.” The Salt Lake Tribune further reported that Co-Diagnostics’ tests “have a higher ‘limit of detection’—that is, they require more of the virus to trigger a positive result—than most other coronavirus tests approved for sale in the U.S., according to an analysis by the life sciences publication BioCentury.” Accordingly, Co-Diagnostics tests were likely to have a higher false negative reporting rate, meaning that potentially thousands of infected people were inaccurately told that they did not have the disease. The article also reported concerns related to TestNebraska.com and TestIowa.com, other testing services that also used Co-Diagnostics tests. On this news, Co-Diagnostics’ stock price fell $5.06 per share, or 22.86%, to close at $17.07 per share on May 15, 2020.