Investors should be aware that false statements may be made -- including in company press releases, promotional materials, and social media posts -- about a company offering or developing products that prevent, detect, or treat COVID-19, in order to inflate the value of a company’s stock. Fraudulent stock promotions of these companies also may be made through “research reports” that make predictions of a specific “target price.” Never invest in a company based solely on information in a press release or stock promotion. If claims about the company’s products are inaccurate or unreliable, you may lose a lot of the money you invest.
Since the beginning of the COVID-19 pandemic, the SEC has brought numerous enforcement actions against companies for making false and misleading claims about purported COVID-19 related products, including a mobile app for detection, medical and personal protective equipment (PPE), diagnostic tests, facemasks, and thermal temperature scanners. To learn more about SEC enforcement actions relating to COVID-19, visit the SEC Coronavirus (COVID-19) Response webpage.
In SEC v. SCWorx Corp., the SEC charged a company and its former CEO/Chairman for allegedly issuing a press release falsely stating that the company had a “committed purchase order” from a purported buyer to purchase two million COVID-19 rapid test kits, “with provision for additional weekly orders of two million units for 23 weeks, valued at $35 million per week.” The SEC’s complaint...
A senior Iranian official has slammed the United Arab Emirates for being an aggressor, not merely a supporter of aggression, stating that the UAE cannot hide its aggressive nature and role behind ...