Investment bank BKK Solutions LLC filed a complaint against Sensiva LLC and its controlling persons, accusing the defendants of fraudulent misrepresentation of their COVID-19 Testing kits and business in order to coerce the plaintiff into investing.
According to the complaint, the defendants’ COVID-19 detection kits were ineffective and unsuitable for market and were not approved by the Food and Drug Administration (FDA); despite this, the defendants did not sustain any major financial losses because they had coerced the plaintiff into investing more than $10 million, covering the majority of the defendants’ costs.
The complaint alleges the defendants fabricated a fictitious approval process through the Department of Human and Health Services in order to reassure the plaintiff, despite their concerns about the lack of FDA approval. BKK also accuses the defendants of failure to disclose the ineffectiveness of their reAct test kits.
The plaintiff is seeking recovery of damages and costs pursuant to the Securities Exchange Act. They are represented by Flanagan Partners LLP and Dechert LLP.