LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) 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.
To obtain information or actively participate in the class action, please visit the Cancer Genetics page on our website at www.glancylaw.com/case/cancer-genetics-inc. Investors that suffered losses on their Cancer Genetics investments are encouraged to contact Lesley Portnoy of GPM to discuss their legal rights in this class action at 310-201-9150 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 basis at all relevant times.
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If you purchased shares of Cancer Genetics during the Class Period you may move the Court no later than June 4, 2018 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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