Covid-Test Maker Sued by Investor Over ‘100% Accurate’ Claim

A lab technician removes vials from an automated extraction machine for Covid-19 virus testing at a Co-Diagnostics facility in Salt Lake City.Photographer: George Frey/Bloomberg

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By Edvard Pettersson

June 15, 2020 at 5:50 PM UTC

This article is for subscribers only.

A maker of Covid-19 tests was sued by an investor who accused the company of falsely claiming its tests were 100% accurate in order to juice its share price while officers and directors were exercising their stock options.

Co-Diagnostics Inc. was named in a securities-fraud suit filed Monday in federal court in Salt Lake City by Gelt Trading Ltd. Sandy, Utah-based Co-Diagnostics was among a number of small-cap diagnostic companies that saw their market value multiply earlier this year because of the importance of testing in combating the coronavirus.