b'bioengineering company Daewoong based on yearsthat affirmed the potential success of Jeuveau despite of significant investment in research and development.the ongoing proceeding in the ITC. Plaintiffs also al-The company stated that it believed it would attain theleged that defendants misleadingly failed to disclose to number two U.S. market position within 24 months of itsinvestors that: (i) the real source of the botulinum toxin launch. In March 2019, the ITC formally commenced anbacterial strain, as well as the manufacturing processes investigation into Evolus based on the action broughtused to develop Jeuveau, originated with and were by Allergan and Medytox. Between March 2019 andmisappropriated from Medytox; (ii) as a result, Evolus November 2019, in press releases, earnings calls, andfaced a real threat of regulatory and/or court action SEC filings, Evolus highlighted the potential success ofthat would prohibit the import, marketing, and sale of Jeuveau, the products FDA approval, the companysJeuveau, which seriously threatened Evolus ability to growing revenue, and the companys confidence in thecommercialize Jeuveau and generate revenue; and (iii) intellectual property underlying Jeuveau despite theany revenue generated from the sale of Jeuveau was ITC investigation. After a series of evidentiary hearingsbased on Evolus unlawful activities.before the ITC in February 2020, the company contin- The statutory lead plaintiff process is currently under-ued to emphasize its confidence in the products suc- way, and lead plaintiff motions were filed on December cess and in the strength of the companys intellectual15, 2021. property. The evidence and legal arguments presented in the ITC proceeding were largely confidential and Evolus made public statements to ease any concernsChernysh v. Chembio Diagnostics, Inc., et al., by characterizing the case as speculative and filed onlyCase No. 2:20-cv-2706 (ARR) (E.D.N.Y.) to cause confusion. On July 6, 2020, the ITC issued itsRevocation of COVID-19 Antibody Test Initial Final Determination, concluding that Evolus had in fact misappropriated the botulinum toxin strain andEmergency Use Authorizationthe processes that led to its development and manu- Chembio Diagnostics, Inc. (Chembio) is a point-of- facture. The commission also recommended a ten-yearcare diagnostics company focused on detecting and di-ban on the import and sale of Jeuveau into the U.S. Theagnosing infectious diseases through its patented Dual companys stock thereafter fell 37% to close at $3.35 onPath Platform (DPP) technology. DPP uses a small July 8, 2020. drop of blood from the finger to provide diagnostic re-On October 16, 2020, investors filed a putative classsults. In response to the COVID-19 pandemic, Chembio action complaint against the company and certain ex- focused on the development and commercialization ecutives, alleging violations of Sections 10(b) and 20(a)of a COVID-19 antibody test using its DPP technology, and Rule 10b-5 of the 1934 Act. Specifically, plaintiffswhich was one of the first authorized by FDA during the alleged that defendants made false and misleadingpandemic. Between March and June of 2020, Chembio statements in Evoluss press releases and earnings callsmade various claims regarding the effectiveness of its 38'