NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Cancer Genetics, Inc. (“Cancer Genetics” or the “Company”) (NASDAQ: CGIX) of the June 4, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Cancer Genetics stock or options between March 23, 207 and April 2 , 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/CGIX. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all those who purchased Cancer Genetics securities between March 23, 2017 and April 2 ,2018 (the “Class Period”). The case, Phetteplace v. Cancer Genetics, Inc. et al., No. 2:18-cv-05612 was filed on April 5, 2018, and has been assigned to Judge Esther Salas.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Cancer Genetics had ineffective disclosure controls and internal controls over financial reporting; and (2) as a result, the Company’s statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.
Specifically, on April 2, 2018, Cancer Genetics reported that, following its Chief Executive Officer’s departure, it conducted a comprehensive review of its strategy and organization. This led Cancer Genetics to record a bad debt expense of $4.4 million and write off $1.8 million of its accounts receivable in the fourth quarter, with a significant portion related to collection issues with accounts receivables recorded after 2015. Cancer Genetics also reported that, on December 31, 2017, its “cash position and history of losses required management to assess [its] ability to continue operating as a going concern[.]”
After the announcement, Cancer Genetics’ share price fell from $1.65 per share on April 2, 2018 to a closing price of $1.10 on April 3, 2018—a $0.55 or a 33.33% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Cancer Genetics’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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