Arrayit Corporation (ARYC)

[WebSlinger]

From the SEC complaint:

"According to the SEC's complaint, in March and April 2020, Schena falsely claimed that Arrayit had developed a COVID-19 blood test when it had not yet purchased materials to make a test. As alleged, Schena also falsely asserted that the test had been submitted for emergency approval, and falsely boasted to investors that there was a high demand for the test."

From the DOJ complaint:

"In early March 2020, Arrayit began promoting a test for COVID-19 through its website and attempted to exploit the pandemic by claiming that it could test dried blood samples for both allergens and COVID-19, and instructing its patient recruiters and clinics to add on or bundle Arrayit’s allergy test and COVID-19 test regardless of medical necessity. Arrayit’s stock price doubled in mid-March. Arrayit never disclosed that the FDA informed Arrayit on April 17 that its COVID-19 test was not at an acceptable level of performance. On April 13, 2020, the SEC suspended trading in Arrayit stock because of questions regarding the accuracy and adequacy of publicly-available information concerning Arrayit’s financial condition and COVID-19 blood test."

"On March 17, 2020, SCHENA sent emails to medical clinics announcing that Arrayit had developed a COVID-19 test based “on advanced Silicon Valley technology and finger stick blood collection.” In reality, Arrayit had not developed, validated, or produced a test at that time; indeed, this affiant has reviewed emails and purchase orders indicating that SCHENA first ordered the COVID-19 antigens that would be necessary to attempt to develop a test on that same date."

"In sum, Arrayit and SCHENA’s statements surrounding COVID-19 fit within a pattern of false and misleading statements to investors and others about Arrayit and its allergy testing"