“In fact, when the company issued the releases, Parallax was insolvent and did
not have the capital to develop a test.Parallax’s own internal projections also estimated that,even if the company had the funds, it would take it more than a year to develop a test. Moreover, Parallax did not possess the PPE and medical equipment that it offered for sale, and had neither the money to purchase the equipment nor the Food and Drug Administration (“FDA”)registrations needed to import and distribute the equipment,” the FCC stated in its complaint.
Additionally, the SEC alleged that the company’s CEO Arena drafted the seven misleading press releases to boost the declining PRLX stock price. During the four-week period starting March 11, the daily closing price of PRLX was 20% higher than the period between January 1 and March 10, 2020, the day before Parallax issued its first misleading press release.
Furthermore, the SEC alleged that Parallax CTO Bradley helped Arena draft two misleading press releases.
