Did you lose money on investments in NeoGenomics, Inc.? If so, please visitNeoGenomics, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, NY / ACCESSWIRE / December 9, 2022 / Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of NeoGenomics, Inc. ("NeoGenomics" or the "Company") (NASDAQ:NEO) between February 27, 2020 and April 26, 2022, inclusive (the "Class Period"). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Exchange Act of 1934.
NeoGenomics provides cancer tests and testing services to doctors, clinics, hospitals, and pharmaceutical companies. Among the Company's portfolio of tests are next generation sequencing ("NGS") tests. NGS tests have become popular with pathologists in recent years because they can test multiple genes of a cancer simultaneously, making them more cost- effective and efficient than older legacy tests.
According to the complaint, throughout the Class Period, NeoGenomics consistently misrepresented to investors that it had a "comprehensive menu" of cancer tests that positioned it as a "one-stop-shop" for pathologists that needed cancer testing. The Company also stated that it had "every kind of testing modality that you can use for cancer, including some of the fast-growing new ones, like next-generation sequencing," and had "a competitive advantage" as a "go-to reference lab with a comprehensive menu for just about any kind of tests that you want to have done in cancer [] and we keep our test menu very advanced." The Company also stated that it could "leverage" the supposedly "fixed cost" structure of its business to improve profitability as revenue increased and stated that it had a "robust Compliance Program…to ensure compliance with the…laws, regulations and governmental guidance applicable to our business".
Plaintiff alleges that throughout the Class Period, Defendants 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) 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; and (iii) NeoGenomics violated federal healthcare laws and regulations related to fraud, waste, and abuse.
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" and had recently "notified the Office of the Inspector General of the U.S. Department of Health and Human Services of our investigation." Additionally, the Company disclosed 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, the price of NeoGenomics stock fell $8.18 per share, or 17.6%, to close at $38.35 per share on November 4, 2021.
On March 28, 2022, NeoGenomics disclosed that "the Board of Directors and Mark Mallon, Chief Executive Officer, have agreed that Mr. Mallon will step down as CEO and member of the Board, effective immediately." At the same time, the Company lowered its Q122 guidance and withdrew its 2022 yearly guidance. On this news, the price of NeoGenomics stock fell $5.30 per share, or 29.8%, to close at $12.49 per share on March 29, 2022.
On April 27, 2022, NeoGenomics reported that its first-quarter 2022 revenue was $117 million, it had an EBITDA loss of $19 million, and that "[c]onsolidated gross profit for the first quarter of 2022" had "decrease[d] 8.0% compared to the first quarter of 2021". The Company explained that "higher payroll and payroll related costs to support the Company's strategic growth initiatives" drove the decreased profit and increased operating expenses. On a conference call that day, the Company attributed its poor performance to, among other things, the fact that "our test mix is weighted to legacy modalities and disease-specific NGS offerings, while the market is moving towards larger, more comprehensive panels". On this news, the price of NeoGenomics stock fell $0.41 per share to close at $10.44 per share on April 27, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than February 6, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired NeoGenomics securities, and/or would like to discuss your legal rights and options please visit NeoGenomics, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
[email protected]
SOURCE: Bernstein Liebhard LLP