February 19, 2021

Arrayit Settles SEC Suit Alleging Misleading Claims on COVID-19 Blood Test

Arrayit Corp, a California-based biotech company, and its chief executive officer Renee Schena accepted an agreement with the Securities and Exchange Commission (SEC) on February 12,to settle charges that the company had mislead investors regarding its development of a COVID-19 test.  In March 2020, the president of Arrayit, Mark Schena (who is also facing charges from both the SEC and DOJ), announced that the company had developed a finger-stick COVID-19 test and had received more than 50,000 orders for the tests despite having not yet even ordered the reagents required to produce such a test.  As a result of these misrepresentations, the SEC suspended trading of Arrayit shares between April 14 and April 27, 2020.  Neither Arrayit or Renee Schena admitted to the allegations as part of the settlement.  However, as a result of the settlement, Renee Schena may not operate a public company for three years and must pay a $50,000 civil penalty. The case is Securities and Exchange Commission v. Arrayit Corp. et al., case number 5:21-cv-01053, in the U.S. District Court for the Northern District of California.