Additionally, the Commission alleged that Decision Diagnostics’ advisors warned that the Covid-19 blood testing device will not work as the firm described it.
The SEC alleged that the defendants’ false and misleading statements regarding their supposed breakthrough technology to detect the deadly virus led to surges in the price and trading volume of Decision Diagnostics’ stock.
SEC is committed to pursuing companies attempting to exploit the COVID-19 pandemic to harm investors
In a statement, SEC Division of Enforcement Director Stephanie Avakian said, “During this unprecedented time, when the need for truthful disclosures concerning Covid-19 tests is of vital importance, Decision Diagnostics and its CEO allegedly misled investors by claiming to have made a working test device when all they had was an idea that had not materialized into a product. With the onset of the global pandemic, we quickly pivoted to identify potential areas of fraud. This case is another example of how the Commission will hold accountable those who exploit the pandemic to harm investors.”
