BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith continues its investigation on behalf of Cancer Genetics, Inc. (“Cancer Genetics” or the “Company) (NASDAQ: CGIX) investors concerning the Company and its officers’ possible violations of federal securities laws.
On April 2, 2018, the Company reported that following the departure of its former CEO, it undertook a “comprehensive and extensive review” of its strategy and organization. As a result, the Company recorded a bad debt expense of $4.4 million and wrote off $1.8 million of its accounts receivable in the fourth quarter of 2017, largely related to “collection issues” with respect to the accounts receivable recorded subsequent to the Company’s 2015 acquisition of Response Genetics Inc. The Company further disclosed that it “had a Material Weakness in Internal Controls Over Financial Reporting at December 31, 2017” and that its 2017 annual report would contain a going concern qualification.
On this news, Cancer Genetics’ share price fell $0.55 per share, or 33.3%, thereby injuring investors.
If you purchased Cancer Genetics securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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