NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP is announcing that a class action lawsuit has been filed in the U.S. District Court of Utah on behalf of those who acquired Myriad Genetics, Inc. (“Myriad” or the “Company”) (NASDAQ: MYGN) securities during the period from September 2, 2016 through August 13, 2019. Investors have until November 26, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
This lawsuit alleges that Myriad and certain of its officers and/or directors have violated federal securities laws and/or engaged in other unlawful business practices pertaining to one of Myriad’s most important products, GeneSight. The GeneSight Psychotropic test is a $2,000 genetic test that helps guide treatment of individuals with major depressive disorder or anxiety disorders. The test helps pinpoint drugs patients are more likely to respond to. On August 1, 2019, the Company announced that insurer United Healthcare would begin covering the GeneSight Psychotropic test on October 1, 2019. This tends to signal commercial success of a medical product. This is just one example of Myriad’s continual positive representations regarding the success of the GeneSight test. On this same day, four officers, Mark Christopher Capone, CEO, Gary A. King, VP, Richard Bryan Riggsbee, CFO, and Bernard Tobin, an officer, sold significant amounts of stock. In total, insiders sold 233,712 shares on August 1, 2019, making between $9,900,380 and $10,305,380.
However, in a 10-K filed on August 13, 2019, Myriad reported that the FDA had requested changes to its GeneSight test. Additionally, the Company reported lower than expected fourth quarter earnings, with a loss of $4.2 million, or 6 cents per share. This fall was attributed to reduced reimbursement for multiple tests, including GeneSight, Vecta, and hereditary cancer tests. The following day, multiple analysts downgraded their ratings of Myriad Genetics, leading to a further price drop. On this news, prices fell from a close of $44.55 on August 13 to close at $25.50 on August 14, 2019 (a decline of $19.05). If the insiders had sold on August 14, just two weeks after their actual sales, they would have made only 60% of what they made on August 1.
If you are a shareholder of Myriad, have information about these matters, or would like to learn more about these claims, please contact Mark A. Strauss of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
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