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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Co-Diagnostics, ProAssurance, Enphase, and Chembio and Encourages Investors to Contact the Firm

2020-08-05 14:00 ET - News Release

NEW YORK, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Co-Diagnostics, Inc. (NASDAQ: CODX), ProAssurance Corporation (NYSE: PRA), Enphase Energy, Inc. (NASDAQ: ENPH), and Chembio Diagnostics, Inc. (NASDAQ: CEMI). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.

Co-Diagnostics, Inc. (NASDAQ: CODX)

Class Period: February 25, 2020 to May 15, 2020

Lead Plaintiff Deadline: August 17, 2020

Co-Diagnostics announced that it had received regulatory clearance to sell its Covid-19 tests in the European Community on February 24, 2020—the first company in the world to receive this clearance. Then, on April 6, 2020 the Company announced that it had received emergency use authorization for its tests from the U.S. Food and Drug Administration (“FDA”). 

Throughout this time and thereafter, Co-Diagnostics, its Chief Technology Officer, and its other officers and directors made unequivocal statements to the market that its Covid-19 tests were 100% accurate—a staggering claim that appeared to set Co-Diagnostics apart from other competitors developing Covid-19 tests

However, on May 14, 2020, after Co-Diagnostics maintained its statements about the success of its test in its first quarter 2020 results, public reports began circulating questioning Co-Diagnostics’ claims of 100% accuracy because the Company was reluctant to participate in U.S.-based testing to verify its claims. Later that evening, the FDA announced publicly that no COVID-19 test is 100% accurate.

On this news, the stock declined 42% from a high of $29.72 per share on May 14, 2020, to close at $17.07 per share on May 15, 2020.

For more information on the Co-Diagnostics class action go to: https://bespc.com/CODX

ProAssurance Corporation (NYSE: PRA)

Class Period: April 26, 2019 to May 7, 2020

Lead Plaintiff Deadline: August 17, 2020

On January 22, 2020, ProAssurance announced that because of a deteriorating loss experience related mainly to one large healthcare account underwritten in 2016, the Company was estimating a $37 million adverse development in its Specialty Property and Casualty (“Specialty P&C”) loss reserves for the fourth quarter of 2019. Additionally, the Company stated that since mid-2019 it had been executing a “comprehensive underwriting strategy in response to emerging trends and changing conditions in healthcare professional liability.”

In response to these disclosures, ProAssurance’s stock price fell $4.18 per share, or 11%, to close at $33.40 per share on January 23, 2020.

On February 20, 2020, ProAssurance announced its 2019 fourth quarter and full year results. The Company revealed that the adverse development from this one large national healthcare account was actually $51.5 million, much larger than the initial estimate of $37 million only a month prior. The Company discussed that “[i]n the span of twelve months, we restructured the majority of our executive team [and] consolidated our Specialty P&C operations” under new leadership.

Then, on May 8, 2020, ProAssurance announced that the large healthcare client would likely not renew its policy and instead would likely exercise an option for tail coverage that would result in an additional $50 million in losses in the second quarter of 2020. This loss, when combined with the $51.5 adverse development, meant that the Company would suffer over $100 million in losses from a single account.

In response to these disclosures, ProAssurance’s stock price fell $4.38 per share, or 22%, to close at $15.95 per share on May 8, 2020.

The complaint, filed on June 16, 2020, alleges that throughout the Class Period defendants misrepresented the Company’s underwriting and reserve standards, and failed to adequately reserve for losses. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) ProAssurance lacked adequate underwriting process and risk management controls necessary to set appropriate loss reserves in its Specialty P&C segment; (ii) ProAssurance failed to properly assess a large national healthcare account that experienced losses far exceeding the assumptions made when the account was underwritten; and (iii) as a result, ProAssurance was subject to materially heightened risk of financial loss and reserve charges.

For more information on the ProAssurance class action go to: https://bespc.com/PRA

Enphase Energy, Inc. (NASDAQ: ENPH)

Class Period: February 26, 2019 to June 17, 2020

Lead Plaintiff Deadline: August 17, 2020

On June 17, 2020, Prescience Point Capital Management published a report concerning Enphase Energy, in which Prescience Point wrote that “[a]t least $205.3m of ENPH’s reported FY19 US revenue is fabricated, and a significant portion of its international revenue is fabricated as well.” Prescience Point further wrote that “Deloitte should launch an in-depth investigation of ENPH’s accounting practices,” and set a target price of “Delisted” for ENPH. Prescience Point also detailed hundreds of millions of dollars’ worth of insider sales in the last few months.

On this news, the stock plummeted from its June 16, 2020 closing price of $52.76 per share to a June 17, 2020 closing price of $39.04 per share, a one day drop of $13.72 or approximately 26%.

The complaint, filed on June 17, 2020, alleges that Enphase misrepresented and/or failed to disclose to investors that: (1) its revenues, both U.S. and international, were inflated; (2) the Company engaged in improper deferred revenue accounting practices; (3) the Company’s reported base points expansion in gross margins were overstated; and that (4) as a result of the foregoing, defendants’ public statements were materially false and misleading at all relevant times.

For more information on the Enphase class action go to: https://bespc.com/ENPH

Chembio Diagnostics, Inc. (NASDAQ: CEMI)

Class Period: March 12, 2020 to June 16, 2020

Lead Plaintiff Deadline: August 17, 2020

In light of the COVID-19 pandemic, Chembio focused on the development and commercialization of a serological or antibody test. Chembio’s antibody test was one of the first antibody tests authorized by the U.S. Food and Drug Administration (“FDA”) during the COVID-19 public health emergency.

On June 16, 2020, the FDA issued a press release disclosing that it had revoked the Company’s Emergency Use Authorization (“EUA”) for the Company’s DPP COVID-19 Igm/IgG System “due to performance concerns with the accuracy of the test.”

On this news, Chembio shares declined from a closing price on June 16, 2020 of $9.93 per share to close at $3.89 per share on June 17, 2020, a decline of $6.04 per share, or over 60%.

The complaint, filed on June 18, 2020, alleges that throughout the Class Period defendants engaged in a scheme to deceive the market and a course of conduct that artificially inflated Chembio’s stock price and operated as a fraud or deceit on Class Period purchasers of Chembio stock by misrepresenting the efficacy of the Company’s DPP COVID-19 test. Defendants achieved this by making false statements about Chembio’s DPP COVID-19 test, while they knew or at least recklessly disregarded that there were material performance concerns with its DPP COVID-19 test. Later, however, when defendants’ prior misrepresentations were disclosed and became apparent to the market, the price of Chembio stock fell precipitously as the prior artificial inflation came out of Chembio’ stock price.

For more information on the Chembio securities class action go to: https://bespc.com/CEMI

About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com.  Attorney advertising.  Prior results do not guarantee similar outcomes. 

Contact Information:
Bragar Eagel & Squire, P.C.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648

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