Co-Diagnostics announced on February 24, 2020, that it had received regulatory clearance to sell its COVID-19 tests in the European Community. Then on April 6, 2020, the company announced that it had received emergency use authorization for its tests from the U.S. Food and Drug Administration (“FDA”). Finally, on May 14, 2020, after the company continued to uphold its statements about the success of its test in its first quarter results, public reports began to circulate that questioned the company’s claims of 100% accuracy as a result of the company being hesitant to participate in U.S.-based testing. Later in the day, the U.S. FDA publicly stated that no COVID-19 test is 100% accurate. The company’s share price fell $5.06 on this news, or over 22%, to close at $17.07 per share on May 15, 2020, thereby injuring investors.

Co-Diagnostics, Inc.

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