NEW YORK – BGI Group said on Sunday that it will pursue legal action against a former business partner, who has repeatedly alleged that BGI Genomics’ PCR tests are flawed and has accused its chairman of wrongdoing, causing the company's share price to drop.
The accuser, Deming Wang, claimed on Chinese social media on Sunday that BGI Genomics’ PCR test results were inaccurate. According to documents reportedly posted by Wang on his social media account, which appear to have been since removed, he was appointed in 2020 to a managerial position at an organization associated with the China National GeneBank, which is maintained by BGI Research, an affiliate of BGI Group.
Among other claims, Wang accused Jian Wang, BGI Genomics‘ chairman, of hiring attackers that purportedly caused him broken ribs and long-term disability after he filed a whistleblower complaint against the company with the Chinese authorities. He further accused the company of using its resources to scrub his social media posts and accounts off the Chinese internet.
This isn’t the first time that Wang has brought accusations against BGI Genomics. In April, he also claimed that the firm's PCR tests are flawed. At that time, BGI Group, BGI’s Genomics’ parent company, issued a statement denying those claims.
Responding to the most recent allegations, BGI Group put out a virtually identical statement, accusing Wang of inventing stories and forging documents to smear BGI affiliates and employees. The firm claimed that in 2017, Wang committed "multiple serious breaches of contract" as a business partner, leading to his termination from the company. BGI Group also asserted that BGI Genomics’ PCR tests are accurate and "adhere to industry standards." In addition, it vowed to take legal action against Wang.
Investors in China did not react favorably to the accusations. At market close on Monday, shares of BGI Genomics dropped by almost 5 percent to RMB 56.23 on the Shenzhen Stock Exchange. The share price further dipped to RMB 55.82 by the end of the day on Wednesday.