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Biotechnology companies are responsible for false statements on the COVID-19 test



The Securities and Exchange Commission has accused the president and Chief Science Officer of a biotechnology company of making false and misleading statements about the development of a COVID-19 test, the agency said.

The SEC filed a complaint Friday with the U.S. District Court in San Jose in the Securities and Exchange Commission against Mark Schena that Schena, President and Chief Science Officer of Sunnyvale, California-based Arrayit Corp., also misled investors by making false and misleading statements about the status of Arrayit's criminal financial reports, both of which “led to increases in the pricing and trading volume of Arrayit shares,” according to the complaint.

The complaint accuses Mr Schena of violating federal security law. Trading in the share was stopped in April, the complaint says.

The complaint states that Schena claimed in emails to investors in March and April 2020 that the company had a "COVID-1

9 test" before Arrayit had all the essential components for such a test. It stated that the company did not order the reagents for a COVID-19 test until March 17, 2020, and these were not sent to Arrayit until two days later. Reagents help produce test results.

The complaint states that an audit firm employed by the firm never completed its audits of Arrayit's financial statements for 2014 and 2015 because the firm did not provide the necessary documents and information, and the firm performed virtually no work on its firm 2015, 2017 and financial statements. 2018.

It is stated that although he knew the firm's firm status, Schena and the company's CEO “made many statements to investors who wrongly assured them that Arrayit would soon be up to date with its required periodic reporting, including archiving audited financial statements, sometimes specifies the first quarter of 2019. “However, it did not submit any quarterly or annual reports during the first quarter of 2019 or at any time thereafter,” the complaint states.

It submitted a form announcing that it had postponed the obligation to submit financial reports to the Commission in In August 2019, the complaint was filed.

"Mark Schena's false and misleading statements affected the price and trading volume of Arrayit's share," the complaint said, with its share price at a time of 313% before falling thereafter. [19659002] "A pandemic does not exclude business leaders from their responsibility to provide accurate information," said Erin E. Schneider, head of the SEC's regional office in San Francisco, in a statement. The company did not respond to a request for comment.

More insurance and risk management news about the coronavirus crisis here .

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