On July 5, 2023, the SEC instituted settled cease-and-desist proceedings against Co-Diagnostics, Inc., stating: "These proceedings concern Co-Diagnostics’s issuance of misleading press releases on February 6 and 10, 2020 concerning a screening test it had developed to detect the novel coronavirus, later named COVID-19 by the World Health Organization. Specifically, the press releases misleadingly suggested that the test could be used by consumers to detect COVID-19, when in fact, at that time, the test was intended for Research Use Only (“RUO”), which meant it could not be sold for clinical diagnostic purposes. Co-Diagnostics offered and sold securities to investors after it issued the February 6 and 10, 2020 press releases. In addition, Co-Diagnostics failed to disclose related party transactions involving the family members of the company’s Chief Executive Officer (“CEO”) and then-Chief Financial Officer (“CFO”), Secretary, and General Counsel in its annual reports for the fiscal years ended December 31, 2018, 2019, and 2020 and in its definitive proxy statements filed in 2019, 2020, and 2021. Co-Diagnostics also failed to keep accurate books and records and failed to have disclosure controls and procedures designed to ensure the company disclosed related party transactions as required."

On July 5, 2023, the SEC "announced settled charges against Co-Diagnostics, Inc., a Utah-based molecular diagnostics company, its CEO Dwight H. Egan, and its Head of Corporate Communications and Investor Relations Andrew B. Benson, for issuing two misleading press releases concerning a screening test that Co-Diagnostics had developed to detect COVID-19. In addition, the SEC charged Co-Diagnostics with failing to disclose compensation paid by the company to the sons of Egan and Reed L. Benson, the company's former CFO, Secretary, and General Counsel."