LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming February 6, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired NeoGenomics, Inc. (“NeoGenomics” or the “Company”) (NASDAQ: NEO) securities between February 27, 2020 and April 26, 2022, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
On November 4, 2021, NeoGenomics disclosed that it was “conducting an internal investigation with the assistance of outside counsel that focuses on the compliance of certain consulting and service agreements with federal healthcare laws and regulations” and had recently “notified the Office of the Inspector General of the U.S. Department of Health and Human Services of our investigation.” The Company also revealed that it had “accrued a reserve of $10.5 million for potential damage and liabilities associated with the federal healthcare program revenue received spanning multiple years.”
On this news, NeoGenomics’ stock price fell $8.18, or 17.6%, to close at $38.35 per share on November 4, 2021, thereby injuring investors.
Then, on March 28, 2022, after the market closed, NeoGenomics announced that its Chief Executive Officer, Mark Mallon, had resigned, less than a year after accepting the position. The Company also stated that revenue for first quarter 2022 would be “below the low end of its prior guidance of $118 - $120 million” and withdrew its fiscal 2022 guidance.
On this news, NeoGenomics’ stock price fell $5.30, or 29.8%, to close at $12.49 per share on March 29, 2022, thereby injuring investors further.
Then, on April 27, 2022, NeoGenomics announced disappointing financial results for Q1 2022, including an EBITDA loss of $19 million, that consolidated gross profit had decreased by 8% compared to the previous year, and that operating expenses had increased by 59% compared to the previous year.
On this news, NeoGenomics’ stock price fell $0.41, or 3.8%, to close at $10.44 per share on April 27, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) NeoGenomics was anything but a “one-stop-shop” for cancer testing because it did not offer the most technologically advanced NGS tests, which led to a significant decrease in revenue as current and prospective customers went elsewhere for their testing needs; (2) the Company’s costs were not fixed because NeoGenomics needed to hire additional employees to process more complex customized testing demanded by customers utilizing the Company’s outdated portfolio of tests, leading to operational challenges, decreased lab efficiency, and increased testing turnaround times; (3) NeoGenomics violated federal healthcare laws and regulations related to fraud, waste, and abuse; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired NeoGenomics securities during the Class Period, you may move the Court no later than February 6, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.