Chromatics Color Sciences International, Inc.

This company used the image of protecting newborn babies in its stock promotion. The idea was that babies would not have to be stuck with a needle to test for disease; instead, the company’s supposedly revolutionary color identification system could perform tests without the use of blood. The promotion was based on a claim to have a patented ability to measure color with sufficient precision to obtain FDA approval to use the device to diagnose a disease. Unbeknownst to investors, color identification technology was extremely advanced, and this company possessed no real color identification technology. To top things off, the detection that the FDA approved was easily done with the naked eye.