NEW YORK, Jan. 31, 2021 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Sona Nanotech Inc. ("Sona" or the "Company") (OTCMKTS: SNANF) and certain of its officers. The class action, filed in the United States District Court for the Central District of California, and docketed under 21-cv-00169, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Sona securities between July 2, 2020 and November 25, 2020, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). Plaintiff alleges that Defendants violated the Exchange Act by publishing false and misleading statements to artificially inflate the prices of the Company's securities.
If you are a shareholder who purchased Sona securities during the Class Period, you have until February 16, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Sona purports to be engaged in researching and developing gold nanorod products for diagnostic tests and medical treatment applications.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company's business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and failed to disclose to investors that: (1) it was unreasonable for Sona to represent that it could receive results from field studies of its COVID-19 antigen test within a month; (2) Sona's positive statements about its COVID-19 antigen test were unfounded as the U.S. Food and Drug Administration ("FDA") would deprioritize emergency use authorization approval of Sona's antigen test finding it did not meet "the public health need" criterion; (3) it was unreasonable for Sona to believe that data gathered over such a short period of time would be sufficient for approval of its antigen test by either the FDA or Health Canada; (4) the Company would have to withdraw its submission for Interim Order ("IO") authorization from Health Canada for the marketing for its COVID-19 antigen test as it lacked sufficient clinical data to support approval; and (5) as a result, defendants' statements about their business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On August 6, 2020, Sona published a press release providing an update on the status of its COVID-19 antigen test and stating there would be a delay in results.
On this news, shares of Sona fell $3.29 per share, or over 35%, to close at $5.91 per share on August 6, 2020.
On October 29, 2020, Sona issued a press release announcing that the FDA had deprioritized its EUA review of the Company's COVID-19 antigen test.
On this news, shares of Sona fell $2.77 per share, or over 48%, to close at $3.00 per share on October 29, 2020, damaging investors.
On November 25, 2020, the Company issued a press release announcing that it withdrew its application of IO authorization from Health Canada for its COVID-19 antigen test.
On this news, shares of Sona fell $1.56 per share, or over 67%, to close at $0.74 per share on November 25, 2020, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
