SAN FRANCISCO, CA / ACCESSWIRE / November 25, 2022 / Hagens Berman urges Fulgent Genetics, Inc. (NASDAQ:FLGT) investors who suffered significant losses to submit your losses now. A securities fraud class action has been filed after Fulgent disclosed the DOJ and SEC are conducting investigations.
Class Period: Mar. 22, 2019 - Aug. 4, 2022
Lead Plaintiff Deadline: Nov. 21, 2022
Contact An Attorney Now: [email protected]
Fulgent Genetics, Inc. (NASDAQ:FLGT) Securities Fraud Class Action:
The litigation focuses on Fulgent's previously claimed "very strong" and "truly outstanding" financial results.
The complaint alleges Defendants made materially false and misleading statements and failed to disclose that: (1) Fulgent had been conducting medically unnecessary laboratory testing, engaging improper billing practices related to laboratory testing, and providing or receiving compensation in violation of the Anti-Kickback statute and Stark Law; (2) accordingly, Fulgent was likely to become subject to enhanced legal and regulatory scrutiny; and, (3) Fulgent's revenues, to the extent they were derived from unlawful conduct, were unsustainable.
According to the complaint, investors learned the truth on Aug. 4, 2022, when Fulgent announced its Q2 2022 financial results and startled investors with its additional disclosure that the SEC was investigating the company's 2018 - Q1 2020 financial reports and the DOJ was investigating allegations of medically unnecessary laboratory testing, improper billing for laboratory testing, and compensation received or provided in violation of federal and California law.
This news sent the price of Fulgent shares crashing more than 17% lower during the next 2 trading days, wiping out over $300 million of shareholder value.
"We're focused on investors' losses and proving Fulgent lied about the legality of its reported revenues and about its growth prospects," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Fulgent and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Fulgent should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP