Welcome to the Chembio Securities Settlement Website

This website has been established to provide general information related to the proposed settlement of the case known as In re Chembio Diagnostics, Inc. Sec. Litig., Case No. 2:20-cv-02706-ARR-JMW (the “Action”), pending before the United States District Court for the Eastern District of New York (the "Court"). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation and Agreement of Settlement (the "Stipulation") dated December 28, 2022, which can be found and downloaded by clicking on the Case Documents tab above. Your rights may be affected by the Settlement if you purchased Chembio common stock directly in or traceable to Chembio’s May 2020 Offering, and/or otherwise purchased or acquired Chembio common stock during the period between March 12, 2020 through June 16, 2020, inclusive (the “Class Period”).

The law firms of Robbins Geller Rudman & Dowd LLP and Rolnick Kramer Sadighi LLP were appointed to represent the Class Members. These lawyers are called Lead Counsel. You will not be separately charged for the services of these lawyers. The Court will determine the amount of Lead Counsel’s fees and expenses. Any fees and expenses awarded by the Court will be paid from the Settlement Fund. If you want to be represented by your own lawyer, you may hire one at your own expense.

WHAT IS THIS LAWSUIT ABOUT?

As more fully described in the Notice of Pendency and Proposed Settlement of Class Action (the "Notice"), this Litigation arises under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (the “Securities Act”) and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”). More specifically, Lead Plaintiffs alleged that, throughout the Class Period, Defendants made false and/or misleading statements regarding the Company’s Dual Path Platform (“DPP”) COVID-19 Test, including that the test could determine current or past exposure to the COVID-19 virus, that the test provided high sensitivity and specificity, and that the test was 100% accurate for total antibodies 11 days post the onset of symptoms, causing the price of the Company’s common stock to trade at artificially inflated prices. Lead Plaintiffs further alleged that a Prospectus, a Prospectus Supplement dated May 7, 2020 and Registration Statement pursuant to which the Company conducted a secondary stock offering in May 2020 (the “May 2020 Offering”) contained inaccurate and misleading statements and omitted facts necessary to render statements made not misleading. On June 16, 2020, the FDA announced that it had revoked the Company’s Emergency Use Authorization (“EUA”) for its DPP COVID-19 Test, which Lead Plaintiffs alleged caused the Company’s share price to significantly decline.

In the course of the Action, the Settling Parties engaged the services of Jed Melnick, Esq., a highly experienced mediator of complex commercial matters. The mediation was preceded by the submission and exchange of extensive mediation statements. The parties engaged in good-faith negotiations, but did not reach a settlement at the mediation. While the Settling Parties did not reach an agreement to settle the Action at the mediation, the Settling Parties continued settlement negotiations. On August 26, 2022, the Settling Parties reached an agreement-in-principle to resolve the Action, subject to the negotiation of mutually acceptable terms of a settlement agreement and necessary Court approval.

WHAT DOES THE SETTLEMENT PROVIDE?

The Settlement, if approved, will provide Eight Million, One Hundred Thousand Dollars ($8,100,000) (the “Settlement Amount”). The Settlement Amount and any interest it earns constitute the “Settlement Fund.” The Settlement Fund, after deduction of Court-approved attorneys’ fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court, is the “Net Settlement Fund.” If the Settlement is approved by the Court, the Net Settlement Fund will be distributed to eligible Authorized Claimants.

ADDITIONAL INFORMATION

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice and Stipulation, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

IMPORTANT DATES AND DEADLINES