In separate matters, the SEC charged issuers with fraud for making false statements in press releases regarding products made to combat COVID-19 (see here and here). The SEC had previously suspended trading in the companies' securities (see here and here).

First, the SEC alleged that one company made false claims in a press release on March 31, 2020 by stating that it had begun offering and shipping finger-prick COVID-19 tests that could be administered at home to the general public.

Second, the SEC alleged that another company and its CEO had provided misleading information in press releases on March 30, 2020 and April 3, 2020 regarding a "multi-national public-private-partnership" to sell thermal scanning equipment. The SEC claimed that the CEO drafted the press releases while fully aware of the fact that the statements were false.

The SEC is seeking permanent injunctive relief and the imposition of civil penalties against the companies, as well as an officer and director ban against the CEO of the penny stock company.

Originally published May 14, 2020.

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