NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the District of Utah on behalf of all investors that purchased Myriad Genetics, Inc. (NASDAQ: MYGN) securities between September 2, 2016 to August 13, 2019 (the “Class Period”). Investors have until November 26, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On September 1, 2016, Myriad announced the completion of its acquisition of Assurex Health, Inc. (“Assurex”). Myriad also acquired GeneSight through this acquisition.
On July 31, 2018, Myriad announced that it had closed its acquisition of Counsyl, Inc. (“Counsyl”). This acquisition provided Myriad with two new products—ForeSight and Prelude—in the expanded carrier screening and non-invasive prenatal testing markets, respectively. The company estimated that these markets would grow to approximately three million tests performed in the U.S. and $1.5 billion over the next five years.
The complaint, filed on September 27, 2019, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) GeneSight lacked evidence or information sufficient to support the tests in their current form, including their purported benefits; (ii) the U.S. Food and Drug Administration (“FDA”) had requested changes to GeneSight and questioned the validity of the test’s purported benefits; (iii) Myriad had been in ongoing discussions with the FDA regarding the FDA’s requested changes to GeneSight; (iv) Myriad’s acquisition of Counsyl—and thereby, Foresight—caused the company to incur the risk of suffering from lower reimbursement for its expanded carrier screening tests, which had the potential to, and actually did, materialize into a material negative impact on the company’s revenue; and (v) as a result, the company’s public statements were materially false and misleading at all relevant times.
On August 13, 2019 Myriad issued an earnings release, wherein the company reported its fiscal fourth quarter and full year 2019 financial results. In this release, it was disclosed that “[u]nfortunately, revenue in the fourth quarter was two percent below expectations largely due to lower reimbursement for [the Company’s] expanded carrier screening test”—i.e., Foresight.
Later that day, in an earnings conference call with investors and analysts, it was revealed that “the FDA requested changes to the GeneSight test offering” after Myriad had provided the FDA with clinical evidence and other information to support GeneSight Psychotropic, and that the company has “been in ongoing discussions with the FDA regarding its request.”
Also later that day, Myriad filed an Annual Report on Form 10-K with the SEC, reporting the Company’s financial and operating results for the fiscal year ended June 30, 2019 (the “2019 10-K”). In the 2019 10-K, Defendants disclosed that the FDA had questioned whether the validity of GeneSight’s purported benefits had been established. The 2019 10-K also revealed that, since at least late 2018, the FDA had repeatedly questioned the claims of marketed genetics tests, such as GeneSight.
On this news, Myriad’s stock price fell $19.05 per share, or 42.76% to close at $25.50 per share on August 14, 2019.
If you purchased Myriad Genetics securities during the Class Period or continue to hold shares purchased before the Class Period, have information, 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 Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Myriad Genetics lawsuit, please go to https://bespc.com/MYGN. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.