BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors that purchased Cancer Genetics, Inc. (“Cancer Genetics” or the “Company”) (NASDAQ: CGIX) securities between March 23, 2017, and April 2, 2018, inclusive (the “Class Period”). Cancer Genetics investors have until June 4, 2018 to file a lead plaintiff motion.
Investors that suffered losses on their Cancer Genetics investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
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.
The complaint filed in this class action alleges that, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Cancer Genetics had ineffective disclosure controls and internal controls over financial reporting; and (2) as a result, Defendants’ statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.
If you purchased shares of Cancer Genetics during the Class Period, 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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