Defendant Name:
Co-Diagnostics, Inc.
Defendant Type:
Public Company
SIC Code:
9999
CUSIP:
18976310
Document Reference:
33-11209
Document Details
Legal Case Name
In the Matter of Co-Diagnostics, Inc.
Document Name
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
Document Date
05-Jul-2023
Document Format
Administrative Proceeding
AAER
4428
Allegation Type
Issuer Reporting and Disclosure
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Civil Penalty
Individual:
$250,000.00
Shared:
