LA City Attorney Orders COVID-19 At-Home Test Maker To Quit Sales

The City Attorney of Los Angeles has reached a settlement with Yikon Genomics Inc., a California company accused of selling at-home “test kits” for COVID-19 that have not received FDA approval.

In a complaint filed in Los Angeles Superior Court last Friday, the defendants allegedly registered the domain “TheCoronavirusTestKit.com” and advertised a product for $39.

Consumers would receive a test kit, which used a “simple finger stick procedure” in order to test for COVID-19 antibodies in the bloodstream.

The lawsuit against Yikon Genomics states that a marketplace has grown where companies make false claims to have COVID-19 test kits. In addition, these kits are particularly attractive to those living in Los Angeles who are under various stay-at-home orders from the Governor of California as well as local municipalities.

“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,” claims that complaint filed against Yikon.

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Yikon reportedly claimed on its website that the kit could be used to screen for antibodies and accurately assist with the diagnosis of COVID-19. On March 12, 2020, a Twitter account with the handle @Yikon_Genomics sent out a link to the Corona Kit Website with the statement: “We are accepting individual orders for $39/kit, or you can buy boxes of 100 kits for $2,000 USD (a 50% discount),” according to the lawsuit filed against Yikon.

The City Attorney claims that the defendant violated Business and Professions Code 17500 by disseminating misleading and untrue statements with the intent to induce consumers to purchase at-home test kits. The lawsuit goes on to say that the statements are untrue because the U.S. Food and Drug Administration has not authorized the use of at-home COVID-19 test kits.

The actions of the defendants make them liable for damages up to $2,500 for each violation under the Business and Professions Code of California as well as other remedies. The lawsuit states that Yikon violated the Health and Safety Code for selling and offering a home medical device in California that is misbranded and not approved by the FDA.

“Defendants’ unlawful, unfair, and fraudulent business acts or practices, as described above, present a continuing threat to members of the public,” the lawsuit says.

Yikon knew or should have known that the statements about home test kits were untrue and that it was illegal to market these types of COVID-19 test kits, according to the City Attorney.

In a press release related to the lawsuit, Los Angeles City Attorney Mike Feuer said, “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…In this crisis, Angelenos’ health depends on accurate, reliable information and legitimate products that can actually help them.” 

In addition, the stipulated judgment against Yikon protects the public health by immediately ending the advertising, marketing and sales of the “Yikon At-Home Test Kit” and consumers will receive full restitution in the form of refunds, according to the press release.

The press release further states that Yikon can only sell their COVID-19 test kits for at-home use if they receive approval by the FDA and comply with all federal and state regulations to do so.

As a result of COVID-19, the FDA has introduced interim guidelines to speed up the availability of COVID-19 testing, while retaining standards for the reliability of the tests, the lawsuit says. 

In addition, the city attorney states that the FDA has updated its Frequently Asked Questions page to reflect that it has not authorized any test that is available to purchase for testing oneself at-home for the coronavirus.

“The contagious transmission of COVID-19 is matched only by the infectious spread of confusion, misinformation, and consumer scams and frauds regarding this novel coronavirus,” the coronavirus lawsuit maintains.

The city claims that consumers require accurate and truthful information about COVID-19, and that the health of the lives of California consumers depends on it.

According to the lawsuit, Yikon was allegedly founded in 2012 in Jiangsu Province, China and says that it specializes in “developing and providing genetic analytical products and services for in vitro diagnosis (IVD).” The company was registered to do business in California in 2013.

The plaintiff 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.

The Coronavirus At-Home Test Kit Lawsuit is The People of the State of California v. Yikon Genomics Inc., et al., Case No. 20STCV13169, in California Superior Court, County of Los Angeles.

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