On December 4, 2020, the U. S. District Court for the Southern District of New York entered a final judgment against Applied BioSciences Corp. in connection with the company's fraudulent claims in a press release that it was offering and shipping products to combat the COVID-19 virus.

As alleged in the Commission's complaint, filed on May 14, 2020, Applied BioSciences fraudulently stated in a March 31, 2020 press release that it had begun offering and shipping finger-prick COVID-19 tests to the general public that could be used for "Homes, Schools, Hospitals, Law Enforcement, Military, Public Servants or anyone wanting immediate and private results." The complaint alleged that contrary to these claims, the tests were not intended for home use by the general public and could be administered only in consultation with a medical professional. The complaint further alleged that Applied BioSciences had not shipped any COVID-19 tests as of March 31, 2020 and its press release failed to disclose that the tests were not authorized by the U.S. Food and Drug Administration.

Without admitting or denying the allegations in the complaint, Applied Biosciences consented to the entry of a final judgment enjoining it from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and ordering it to pay a $25,000 civil penalty.

The SEC's case against Applied Biosciences was handled by Kristine Zaleskas, Dugan Bliss, and Thomas P. Smith, Jr., and supervised by Lara S. Mehraban, all of the New York Regional Office.