Pomerantz Appointed Lead Counsel in Decision Diagnostics Securities Litigation

On August 20, 2021, U.S. District Judge John A. Kronstadt of the Central District of California appointed Pomerantz LLP as Lead Counsel on behalf of Anthony Sanchez and Thomas Tossavainen, the Co-Lead Plaintiffs in Anthony Sanchez v. Decision Diagnostics Corp., et al. 21-cv-418 (C.D. Cal.), a securities action brought on behalf of a class of defrauded investors concerning allegations related to Decision Diagnostics Corp.’s (“Decision Diagnostics” or the “Company”) claims that they developed a finger-prick blood test that could detect COVID-19 in one minute.

Decision Diagnostics manufactures prescription and non-prescription diagnostics and home testing products, including blood glucose testing strips, devices and monitors.

From March 2020 to at least June 2020, Decision Diagnostics claimed that it had developed a finger-prick blood test that could detect COVID-19 in less than one minute. The Company also made various representations regarding its progress towards achieving U.S. Food and Drug Administration (“FDA”) emergency use authorization (“EUA”) for this purported COVID-19 finger-prick blood test.

Allegations against Decision Diagnostics include that: (i) the Company had not developed any viable COVID-19 test, much less a test that could detect COVID-19 in less than one minute; (ii) Decision Diagnostics could not meet the FDA’s EUA testing requirements for its purported COVID-19 test; (iii) accordingly, the Company had misrepresented the timeline within which it could realistically bring its COVID-19 test to market; and (iv) all the foregoing subjected Decision Diagnostics to an increased risk of regulatory oversight and enforcement.

On December 17, 2020, the SEC filed a complaint in federal court alleging that Decision Diagnostics had issued a series of press releases that falsely claimed that it had developed a finger-prick blood test that could detect COVID-19 in less than one minute. According to the complaint, from March 2020 to at least June 2020, Defendants made false and misleading statements about the existence of Decision Diagnostics’ COVID-19 device and progress towards achieving FDA EUA for that device. As alleged, at the time of these claims, Decision Diagnostics lacked a proven method for detecting the virus and had no physical testing device. The complaint further alleged that the statements created the misleading impression that Decision Diagnostics would soon introduce the COVID-19 test to the market, which led to surges in the price and trading volume of the Company’s stock.

Following the filing of the SEC complaint, Decision Diagnostics’ share price fell $0.06 per share, or 60%, to close at $0.04 per share on December 18, 2020.