ACCESSWIRE
06 Feb 2023, 01:19 GMT+10
PHILADELPHIA, PA / ACCESSWIRE / February 5, 2023 / Berger Montague advises investors that a securities fraud class action lawsuit has been filed against NeoGenomics Inc. ('NeoGenomics') (NASDAQ:NEO) on behalf of those who purchased NeoGenomics securities between February 27, 2020 and April 26, 2022, inclusive (the 'Class Period').
Investor Deadline: Investors who purchased or acquired NeoGenomics securities during the Class Period may, no later than February 6, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (215) 875-3093, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015 or visit: https://investigations.bergermontague.com/neogenomics-inc/
NeoGenomics provides cancer tests and testing services to doctors, clinics, hospitals, and pharmaceutical companies through its network of cancer testing laboratories in the United States, Europe, and Asia.
On November 4, 2021, NeoGenomics revealed 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' including 'those relating to fraud, waste and abuse,' and had 'accrued a reserve of $10.5 million for potential damage and liabilities associated with the federal healthcare program revenue received spanning multiple years.' Following this news, the price of NeoGenomics common stock fell $8.18 per share, or 17.6%, from $46.53 per share on November 3, 2021 to $38.35 per share at the close of trading on November 4, 2021.
Then, on March 28, 2022, NeoGenomics disclosed the departure of its CEO 'effective immediately' and simultaneously reduced its financial guidance largely due to 'higher than anticipated' costs. Following this news, the price of NeoGenomics common stock fell $5.30 per share, or 29.8%, from $17.79 per share on March 28, 2022 to $12.49 per share at the close of trading on March 29, 2022.
Finally, on April 27, 2022, NeoGenomics revealed that 'higher payroll and payroll related costs' drove decreased profit and increased operating expenses, and admitted that its portfolio of cancer tests 'is weighted to legacy' tests 'while the market is moving towards larger, more comprehensive panels.' NeoGenomics further admitted that it had 'not kept up' with competitors that were offering more in-demand technologically advanced cancer tests. Following this news, the price of NeoGenomics common stock fell $0.41 per share, or 3.8%, from $10.85 per share on April 26, 2022 to $10.44 per share at the close of trading on April 27, 2022.
The complaint alleges that throughout the Class Period, Defendants misrepresented to investors and/or failed to disclose that: (i) 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; (ii) NeoGenomics's costs were not fixed because NeoGenomics needed to hire additional employees to process more complex customized testing demanded by customers utilizing NeoGenomics's outdated portfolio of tests, leading to operational challenges, decreased lab efficiency, and increased testing turnaround times; and (iii) NeoGenomics violated federal healthcare laws and regulations related to fraud, waste, and abuse.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(215) 875-3093
jmaro@bm.net
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
SOURCE: Berger Montague
Get a daily dose of Kansas City Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Kansas City Post.
More InformationJAKARTA, Indonesia: Officials from Indonesia's Aceh province said that more than 180 Rohingya Muslims landed this week by boat, in ...
HONG KONG: Hong Kong's first authorized protest took place since the end of COVID-19 restrictions and under new strict security ...
MOSCOW, Russia: A new campaign has begun across Russia to attract badly needed recruits to replenish its troop numbers for ...
WASHINGTON D.C.: US House of Representatives Speaker Kevin McCarthy has said that lawmakers will move forward on legislation aimed at ...
CROWNPOINT, New Mexico: Navajo Technical University, located on the largest Native American reservation in the US, has become the first ...
WEST READING, Pennsylvania: An explosion occurred at a chocolate factory in Pennsylvania, killing seven people and seeing ten staff members ...
BRUSSELS, Belgium: The energy ministers of European Union member countries have approved a landmark law to end sales of new ...
BEIJING, China: After more than a year of self-imposed exile overseas, Alibaba founder Jack Ma has returned to China, allegedly ...
NEW YORK, New York - U.S. stocks and the dollar made solid gains on Wednesday as banking sector fears continued ...
NEW YORK CITY, New York: In a legal filing, Twitter announced that parts of its source code - the fundamental ...
NEW YORK CITY, New York: Bloomberg News has reported that New Jersey-based Valley National Bancorp is bidding to purchase Silicon ...
NEW YORK, New York - U.S. stocks lipped on Tuesday as bond yields rose in the aftermath of the easing ...