Company name Chembio Diagnostics, Inc.
Stock symbol CEMI
Status Class Action Complaint Filed

NEW YORK, July 1, 2020 – Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York on behalf of investors that purchased Chembio Diagnostics, Inc. (NASDAQ: CEMI) common stock between February 26, 2019 and June 16, 2020 (the “Class Period”). Investors have until August 17, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

In light of the COVID-19 pandemic, Chembio focused on the development and commercialization of a serological or antibody test. Chembio’s antibody test was one of the first antibody tests authorized by the U.S. Food and Drug Administration (“FDA”) during the COVID-19 public health emergency.

On June 16, 2020, the 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.”

On this news, Chembio shares declined from a closing price on June 16, 2020 of $9.93 per share to close at $3.89 per share on June 17, 2020, a decline of $6.04 per share, or over 60%.

The complaint, filed on June 18, 2020, alleges that throughout the Class Period 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 on Class Period purchasers of Chembio stock by misrepresenting the efficacy of the Company’s DPP COVID-19 test. Defendants achieved this by making false statements about Chembio’s DPP COVID-19 test, while they knew or at least recklessly disregarded that there were material performance concerns with its DPP COVID-19 test. Later, however, 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’ stock price.

If you purchased or otherwise acquired Chembio common stock during the Class Period, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Marion Passmore or Melissa Fortunato by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.

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Call to provide more information: Tel: (212) 355-4648

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The submission of this form does not create an attorney-client relationship, nor any obligation on the part of Bragar Eagel & Squire, P.C., or you to file a legal action. Any information you submit will be maintained as confidential. If Bragar Eagel & Squire, P.C., in its sole discretion, believes that you might be an appropriate class representative, Bragar Eagel & Squire, P.C., will contact you to discuss the matter and to determine whether to establish an attorney client relationship.

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