SEC v. Applied BioSciences Corp., No. LR-24977, Southern District of New York (Dec. 7, 2020) — Press Release
raw: Applied BioSciences Corp.
Applied BioSciences Corp., No. LR-24977 (S.D.N.Y. Dec. 7, 2020)
summary
Applied BioSciences Corp. made misleading claims about offering and shipping finger-prick COVID-19 tests, resulting in a $25,000 civil penalty and an injunction against future securities law violations.
paragraph
Applied BioSciences Corp. was accused of making false statements in a March 31, 2020 press release, claiming its finger-prick COVID-19 tests were available for home use and had begun shipping. However, the tests required a medical professional and were not FDA authorized, and no tests had been shipped as of the press release date. The company agreed to pay a $25,000 civil penalty and was enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.
narrative
Applied BioSciences Corp. was sued by the U.S. Securities and Exchange Commission for violating Section 10(b) of the Securities Exchange Act and Rule 10b-5. The company issued a March 31, 2020 press release that falsely claimed it was offering and shipping finger-prick COVID-19 tests for home use, when in fact the tests required a medical professional and were not FDA authorized. Additionally, the company had not actually shipped any tests as of the press release date. The SEC alleged that Applied BioSciences misled investors about product availability and regulatory approval. Without admitting or denying the allegations, the company consented to a final judgment that enjoined future securities law violations and imposed a $25,000 civil penalty. The case was filed in the Southern District of New York and handled by the SEC's New York Regional Office. The final judgment was entered on December 4, 2020.
Classified accounting-fraud(confidence 60%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Parties
Securities and Exchange CommissionApplied BioSciences Corp.
Keywords
applied biosciencesappliedbiosciencesbiosciences corpcorpcovid-final againstsecurities exchangeagainst appliedoffering shippingcovid- testsgeneral publictestsfinalagainst
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 1
- $25K $25,000 $10K–$100K
Entities 6
- company applied biosciences corp.
- company final judgment against applied biosciences corp.
- company on may 14, 2020, alleging fraudulent claims by applied biosciences corp.
- agency Securities and Exchange Commission
- court u. s. district court for the southern district of new york
- court u.s. district court for the southern district of new york
Triples 32
- Applied BioSciences Corp. made misleading claims offering and shipping products to combat the COVID-19 virus
- SEC obtained final judgment against Applied BioSciences Corp. for fraudulent Covid-19-related claims
- SEC filed complaint on May 14, 2020, alleging fraudulent claims by Applied BioSciences Corp.
- Applied BioSciences Corp. made misleading claims offering and shipping products to combat the COVID-19 virus
- SEC obtained final judgment against Applied BioSciences Corp. for fraudulent Covid-19-related claims
- SEC filed complaint on May 14, 2020, alleging fraudulent claims by Applied BioSciences Corp.
- SEC obtains final judgment against Company for Misleading Covid-19-Related Claims
- U. S. District Court for the Southern District of New York entered final judgment against Applied BioSciences Corp.
- Commission filed complaint
- Applied BioSciences Corp. made misleading claims offering and shipping products to combat the COVID-19 virus
- SEC obtained final judgment against Applied BioSciences Corp. for fraudulent Covid-19-related claims
- SEC filed complaint on May 14, 2020, alleging fraudulent claims about Covid-19 products
- Applied BioSciences Corp. made misleading claims offering and shipping products to combat the COVID-19 virus
- Securities and Exchange Commission filed complaint against Applied BioSciences Corp. for fraudulent Covid-19-related claims
- U.S. District Court for the Southern District of New York entered final judgment against Applied BioSciences Corp. for misleading Covid-19-related claims
- Applied BioSciences Corp. made misleading claims offering and shipping products to combat the COVID-19 virus
- Securities and Exchange Commission filed complaint against Applied BioSciences Corp. for fraudulent Covid-19-related claims
- U.S. District Court for the Southern District of New York entered final judgment against Applied BioSciences Corp. for misleading Covid-19-related claims
- Applied BioSciences Corp. misled investors with Covid-19-related claims
- SEC obtained final judgment against Applied BioSciences Corp.
- U.S. District Court for the Southern District of New York entered final judgment against Applied BioSciences Corp.
- Applied BioSciences Corp. filed press release claiming to offer and ship products to combat COVID-19
- SEC filed complaint against Applied BioSciences Corp. on May 14, 2020
- Applied BioSciences Corp. made misleading claims offering and shipping products to combat the COVID-19 virus
- Securities and Exchange Commission filed complaint against Applied BioSciences Corp. for fraudulent Covid-19-related claims
- U.S. District Court for the Southern District of New York entered final judgment against Applied BioSciences Corp. for misleading Covid-19-related claims
- SEC obtains Final Judgment Against Applied BioSciences Corp.
- U.S. District Court for the Southern District of New York entered a final judgment against Applied BioSciences Corp.
- SEC filed complaint on May 14, 2020
- SEC obtains final judgment Applied BioSciences Corp.
- U.S. District Court for the Southern District of New York entered final judgment Applied BioSciences Corp.
- Commission filed complaint May 14, 2020
PDF (from attached: complaint)
Text layers
Extracted body text (1,816c)
SEC Obtains Final Judgment Against Company for Misleading Covid-19-Related Claims Litigation Release No. 24977 / December 7, 2020 Securities and Exchange Commission v. Applied BioSciences Corp., No. 20-cv-03729 (S.D.N.Y. filed May 14, 2020) On December 4, 2020, the U. S. District Court for the Southern District of New York entered a final judgment against Applied BioSciences Corp. in connection with the company's fraudulent claims in a press release that it was offering and shipping products to combat the COVID-19 virus. As alleged in the Commission's complaint, filed on May 14, 2020, Applied BioSciences fraudulently stated in a March 31, 2020 press release that it had begun offering and shipping finger-prick COVID-19 tests to the general public that could be used for "Homes, Schools, Hospitals, Law Enforcement, Military, Public Servants or anyone wanting immediate and private results." The complaint alleged that contrary to these claims, the tests were not intended for home use by the general public and could be administered only in consultation with a medical professional. The complaint further alleged that Applied BioSciences had not shipped any COVID-19 tests as of March 31, 2020 and its press release failed to disclose that the tests were not authorized by the U.S. Food and Drug Administration. Without admitting or denying the allegations in the complaint, Applied Biosciences consented to the entry of a final judgment enjoining it from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and ordering it to pay a $25,000 civil penalty. The SEC's case against Applied Biosciences was handled by Kristine Zaleskas, Dugan Bliss, and Thomas P. Smith, Jr., and supervised by Lara S. Mehraban, all of the New York Regional Office. SEC Complaint
OCR text (1,816c · html-text · 99% conf)
SEC Obtains Final Judgment Against Company for Misleading Covid-19-Related Claims Litigation Release No. 24977 / December 7, 2020 Securities and Exchange Commission v. Applied BioSciences Corp., No. 20-cv-03729 (S.D.N.Y. filed May 14, 2020) On December 4, 2020, the U. S. District Court for the Southern District of New York entered a final judgment against Applied BioSciences Corp. in connection with the company's fraudulent claims in a press release that it was offering and shipping products to combat the COVID-19 virus. As alleged in the Commission's complaint, filed on May 14, 2020, Applied BioSciences fraudulently stated in a March 31, 2020 press release that it had begun offering and shipping finger-prick COVID-19 tests to the general public that could be used for "Homes, Schools, Hospitals, Law Enforcement, Military, Public Servants or anyone wanting immediate and private results." The complaint alleged that contrary to these claims, the tests were not intended for home use by the general public and could be administered only in consultation with a medical professional. The complaint further alleged that Applied BioSciences had not shipped any COVID-19 tests as of March 31, 2020 and its press release failed to disclose that the tests were not authorized by the U.S. Food and Drug Administration. Without admitting or denying the allegations in the complaint, Applied Biosciences consented to the entry of a final judgment enjoining it from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and ordering it to pay a $25,000 civil penalty. The SEC's case against Applied Biosciences was handled by Kristine Zaleskas, Dugan Bliss, and Thomas P. Smith, Jr., and supervised by Lara S. Mehraban, all of the New York Regional Office. SEC Complaint