Métis Nation –
The U.S. Securities and Exchange Commission has been cracking down on companies that make dubious claims about how they can help fight the coronavirus pandemic. Now, one technology company says the regulator went too far.
Nano Magic Inc.,
a maker of lens care, anti-fog and electronic device protection products, has mounted a novel challenge to an SEC decision on April 30 to temporarily freeze its stock over online claims that a disinfectant the company held a patent for could “kill” the novel coronavirus.
The claims, posted on
and the online message board InvestorHub, caused the micro cap company’s share price to spike. But Nano Magic says it wasn’t associated with the authors of the posts and wasn’t responsible for the allegedly misleading claims. The Bloomfield Hills, Mich.-based company says it wasn’t even aware of the online activity until it was contacted by the SEC a week before the suspension order.