Los Angeles City Attorney Mike Feuer (photo by Edwin Folven)

Los Angeles City Attorney Mike Feuer announced on Jan. 5 that his office, in partnership with the Los Angeles County District Attorney’s Office, has resolved an enforcement action against Applied BioSciences Corporation for allegedly unlawfully advertising and selling an in-home COVID-19 antibody test that was not approved by the Food and Drug Administration. The action also named Applied BioSciences Corporation President Chris Bridges and Chairman Scott Stevens. The settlement, pending court approval, requires the defendants to pay a $50,000 civil penalty and to comply with a broad permanent injunction prohibiting them from selling unapproved tests in the future. The settlement was reached after the defendants made full restitution to people who bought the test.

“We’re continuing to fight back against those we claim are trying to profit off the pandemic with allegedly fake vaccines, fake tests, fake cures and fake PPE. With our hospitals and healthcare workers overwhelmed with COVID-19, it’s never been more crucial to pull unauthorized tests, the results of which can’t be trusted,” Feuer said. “Moving forward, we know that COVID fear, fatigue, isolation and misinformation can allow scammers to thrive. As we learn of emerging vaccine scams, for example, Angelenos must be informed and vigilant.”

Prior to the pandemic, Applied BioSciences, a corporation with offices in Beverly Hills, stated on its website that it was “focused on the development and commercialization of novel, science-driven, synthetic cannabinoid therapeutics/biopharmaceuticals,” authorities said. The complaint alleges that, following the emergence of COVID-19, the defendants fraudulently marketed and sold unapproved COVID-19 tests that were falsely advertised as being able to be used by consumers at home without a medical professional or laboratory. The complaint further alleged that the FDA had not approved the defendants’ COVID-19 test and therefore, the marketing and sales allegedly violated California law.

“This case should serve as a warning to would-be scammers that my prosecutors are watching. We will not tolerate the false and dangerous marketing of ineffective and unproven COVID-19 tests in Los Angeles County,” District Attorney George Gascón said. “The harm is not only financial, but also potentially deadly. Victims, who received false negative test results, may fail to seek treatment and fail to quarantine, contributing to the spread of the disease. Meanwhile, those with false positive test results may seek unnecessary treatment, burdening our already strained healthcare system.”

Following entry of the settlement by the court, Applied BioSciences will pay $50,000 in civil penalties. All of the defendants agreed to permanently stop making misleading claims and selling unapproved COVID-19 tests, Feuer said.

Additionally, as part of the settlement, the defendants will admit that they sold more than 1,000 tests for a total of approximately $25,000. As part of this settlement, the defendants have already confirmed under penalty of perjury – and the City Attorney’s Office has verified – that they have fully refunded consumers.

The enforcement action was part of an ongoing campaign to protect residents from businesses unfairly trying to profit from the pandemic.

COVID-related scams, including price-gouging, can be reported to the Los Angeles City Attorney’s Office by calling (213)978-8100, or visiting lacityattorney.org/consumercomplaints.