|Company Name||NeoGenomics, Inc.|
|Class Period||February 27, 2020 to April 26, 2022|
|Lead Plaintiff Motion Deadline||February 06, 2023|
On November 4, 2021, NeoGenomics disclosed that it was “conducting an internal investigation with the assistance of outside counsel that focuses on the compliance of certain consulting and service agreements with federal healthcare laws and regulations” and had recently “notified the Office of the Inspector General of the U.S. Department of Health and Human Services of our investigation.” The Company also revealed that it had “accrued a reserve of $10.5 million for potential damage and liabilities associated with the federal healthcare program revenue received spanning multiple years.”
On this news, NeoGenomic’s stock price fell $8.18, or 17.6%, to close at $38.35 per share on November 4, 2021, thereby injuring investors.
Then, on March 28, 2022, after the market closed, NeoGenomics announced that its Chief Executive Officer, Mark Mallon, had resigned, less than a year after accepting the position. The Company also stated that revenue for first quarter 2022 would be “below the low end of its prior guidance of $118 - $120 million” and withdrew its fiscal 2022 guidance.
On this news, NeoGenomics’ stock price fell $5.30, or 29.8%, to close at $12.49 per share on March 29, 2022, thereby injuring investors further.
Then, on April 27, 2022, NeoGenomics announced disappointing financial results for Q1 2022, including an EBITDA loss of $19 million, that consolidated gross profit had decreased by 8% compared to the previous year, and that operating expenses had increased by 59% compared to the previous year.
On this news, NeoGenomics’s stock price fell $0.41, or 3.8%, to close at $10.44 per share on April 27, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) NeoGenomics was anything but a “one-stop-shop” for cancer testing because it did not offer the most technologically advanced NGS tests, which led to a significant decrease in revenue as current and prospective customers went elsewhere for their testing needs; (2) the Company’s costs were not fixed because NeoGenomics needed to hire additional employees to process more complex customized testing demanded by customers utilizing the Company’s outdated portfolio of tests, leading to operational challenges, decreased lab efficiency, and increased testing turnaround times; (3) NeoGenomics violated federal healthcare laws and regulations related to fraud, waste, and abuse; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Submit Your Information
If you suffered a loss on your NeoGenomics, Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.