SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K


                                 CURRENT REPORT

                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934



         Date of Report (date of earliest event reported): July 23, 1998



                         AMERICAN BIO MEDICA CORPORATION
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          New York                    0-28666                22-3378935
- --------------------------------------------------------------------------------
 (State or Other Jurisdiction       (Commission            (IRS Employer
      of Incorporation)             File Number)           Identification
                                     Number)


           300 Fairview Avenue, Hudson, New York            12534
- --------------------------------------------------------------------------------
          (Address of Principal Executive Offices)        (Zip Code)


       Registrant's telephone number, including area code: (800) 227-1243


                                       2


   Item 5. Other Events

     A lower state  court judge in Maryland  has ruled that the estate of Robert
Friedenberg   ("Friedenberg")  is  entitled  to  5,907,514  common  shares  (the
"Shares") of American Bio Medica Corporation (the "Company").

     This  development  stems  from  litigation  arising  out of the sale to the
Company pursuant to a share exchange  agreement (the "Agreement") by Friedenberg
of two companies solely owned by Friedenberg. The Company acquired the companies
to  obtain  certain   technologies   (the   "Technologies")   which  Friedenberg
represented were owned by them. In 1994, Friedenberg brought an action on behalf
of the two companies seeking a declaratory  judgment  rescinding and voiding the
Agreement.  The Company and other intervening  defendants countered by asserting
third party claims against  Friedenberg for breach of the Agreement and fraud in
the inducement,  alleging that the  Technologies  not only were not delivered to
the Company, but, indeed, did not exist.

     Friedenberg's  claim for  declaratory  relief was  dismissed  and the third
party claims against  Friedenberg  were tried by a jury which rendered a verdict
that  Friedenberg  was in breach of the  Agreement  for  failing to deliver  the
Technologies.  The  jury  also  found  against  Friedenberg  and in favor of the
Company on two of three  fraud  claims.  The  Company  was  awarded  $321,000 in
damages.  Prior to the trial,  Friedenberg  filed a  supplemental  claim for the
Shares he was to receive under the  Agreement in exchange for the  Technologies.
The trial  judge  took  this  claim  under  advisement  and has now  ruled  that
Friedenberg's estate is entitled to the Shares.

     The  position  of the Company and its counsel is that the trial judge erred
in awarding to Friedenberg's  estate the very  consideration  Friedenberg was to
receive  under the  Agreement  which a jury,  after a full trial on the  merits,
found  Friedenberg  not only to have  breached,  but  also to have  fraudulently
induced the Company to enter into.  The Company has taken an an appeal  which it
intends to prosecute vigorously.

   
Item 7. Financial Statements and Exhibits

       Not Applicable


                                      -3-



                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed  on  its  behalf  by
theundersigned hereunto duly authorized.




                                    AMERICAN BIO MEDICA CORPORATION
                                       (Registrant)

                                    By: /s/Stan Cipkowski
                                        ------------------
                                        Stan Cipkowski,
                                        President and Principal
                                        Executive Officer


                                    By: /s/John F. Murray
                                        --------------------
                                        John F. Murray,
                                        Treasurer and Principal
                                        Financial Officer



     Dated: July 31, 1998