SEC sues California biotech company for misleading investors about COVID-19 tests

Decision Diagnostics

17/12/2020 21:53

NEW YORK, Dec 17 (Reuters) - The U.S. Securities and
Exchange Commission sued Decision Diagnostics Corp  DECN.PK  and
its chief executive for allegedly misleading investors by
promising the biotechnology company could test for COVID-19 with
a finger-prick of blood and provide accurate results in less
than one minute.
    In a complaint filed on Thursday in Manhattan federal court,
the SEC said Chief Executive Keith Berman made materially false
statements between March and June about what he claimed was his
company's blood testing kit, and its efforts to obtain Food and
Drug Administration approval for its emergency use.
    The SEC said all the California-based company had at the
time was "a theoretical concept that had not yet materialized
into a product," and that Berman's misstatements led to surges
in Decision Diagnostics' stock price and trading volume.
    Decision Diagnostics did not immediately respond to requests
for comment. 

 (Reporting by Jonathan Stempel in New York; Editing by Will
Dunham)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))