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Law360 (April 6, 2020, 7:23 PM EDT ) The Los Angeles City Attorney's Office reached a deal with a genetic testing company to resolve claims that it was illegally advertising and selling at-home coronavirus testing kits that have not been approved by the U.S. Food and Drug Administration, the office announced Monday.
There are currently no FDA-approved at-home testing kits for the deadly novel coronavirus, which causes a disease called COVID-19, according to LA City Attorney Mike Feuer, but that's not what genetic testing company Yikon Genomics Inc. was advertising to its customers online.
Instead, the China-based and California-incorporated Yikon was falsely advertising a $39 at-home screening kit utilizing a "simple finger stick" that it claimed would test the presence of antibodies to determine current or recent viral infections of COVID-19, according to the complaint that was filed alongside the stipulation agreement on Friday.
"Whenever consumers are motivated in part by fears, they are particularly vulnerable to fraudsters, scammers, and 'snake oil' hucksters and charlatans who prey on those fears to persuade the consumers to seek 'cures,' 'treatments,' and other protections, such as tests," the attorney's office said in the complaint.
In the stipulation for entry of final judgment and permanent injunction, Yikon agreed to end its widespread sales campaign of the unapproved at-home tests and will provide full refunds to those customers who bought kits.
According to the stipulation, Yikon will only be able to sell its at-home coronavirus test kits in California if it receives FDA approval and complies with all state rules and regulations governing the sale of medical devices.
"We're fighting to protect a very anxious public from falling victim to COVID-19 related schemes, including so-called at-home tests that are falsely advertised and should not be used for in-home testing," Feuer said in a statement Monday. "In this crisis, Angelenos' health depends on accurate, reliable information and legitimate products that can actually help them."
In a statement on its Facebook page Monday, Yikon said it is committed to complying with all state and federal laws regarding the marketing and sale of medical devices.
"We intend to pursue FDA approval for the market & sale of COVID-19 test kits, which we hope will aid in mitigating this global health crisis," the company said.
This isn't the only case trying to put a stop to unapproved coronavirus treatments and testing.
Last week, the U.S. Attorney's Office in Los Angeles said a British man tried to ship a fake "miracle cure" panacea labeled as a treatment for the novel coronavirus from the United Kingdom to California and Utah in an effort to make money off the deadly pandemic.
California is represented by Michael N. Feuer, Wilfredo R. Rivera, Christina V. Tusan, William R. Pletcher, Miguel J. Ruiz, Carr A. Tekosky and Rebecca A. Morse of the Los Angeles City Attorney's Office.
Counsel information for Yikon was not immediately available.
The case is The People of the State of California v. Yikon Genomics Inc. et al., case number 20STCV13169, in California Superior Court, County of Los Angeles.
--Editing by Emily Kokoll.
For a reprint of this article, please contact reprints@law360.com.
