SAN DIEGO--(http://www.rgrdlaw.com/cases/genoptix/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of California on behalf of purchasers of Genoptix, Inc. (“Genoptix”) (NASDAQ:GXDX) common stock during the period between July 31, 2009 and June 15, 2010, inclusive (the “Class Period”).)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/genoptix/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Genoptix and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Genoptix is a specialized laboratory service provider focused on delivering diagnostic services in the United States to community-based hematologists and oncologists.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Specifically, defendants continuously hyped the Company’s approach to hematology and oncology testing and diagnostics, projecting they would easily be able to double or triple the size of the Company’s market share in the next three to five years, while failing to disclose that Genoptix’s business model was not working and was causing the Company to actually lose market share. As a result of defendants’ false statements, Genoptix’s stock traded at artificially inflated prices during the Class Period, reaching a high of $38.79 per share on April 30, 2010.
On May 6, 2010, Genoptix issued a press release announcing first quarter 2010 financial results far below consensus. On this news, Genoptix’s stock fell $8.37 per share to close at $27.89 per share on May 7, 2010, a one-day decline of over 23% on high volume. Then, on June 16, 2010, Genoptix issued a press release providing a first look at its second quarter 2010 performance and updating its guidance for the full-year 2010. The Company reduced its revenue guidance to $210 million, down from previous guidance of $235 to $240 million, and its earnings per share guidance to $1.20 per share, down from previous guidance of $1.80 to $1.85 per share. On this news, Genoptix’s stock fell another $5.69 per share to close at $17.19 per share on June 16, 2010, a one-day decline of 25% on high volume.
According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company failed to disclose that its business model was unsustainable; (b) the Company failed to disclose that due to continuing challenges it was facing in the industry, including increased competition, increased managed care pressures, decreased sales force effectiveness and changing trends at the physician level, the Company’s past results could not and would not continue, as Genoptix would not only be unable to grow its operations but would have difficulty maintaining its current client base; (c) the Company failed to disclose that the reason for the Company’s slowdown in its revenue growth was not temporary, nor was it primarily due to the Company’s reconfiguration of its sales department; and (d) given the increased competitive pressures and the changing landscape in the industry, the Company had no reasonable basis to make projections about its revenue growth or its ability to gain or even maintain its market share.
Plaintiff seeks to recover damages on behalf of all purchasers of Genoptix common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site (http://www.rgrdlaw.com) has more information about the firm.