NEW YORK, January 28, 2023 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against NeoGenomics, Inc. (“NeoGenomics” or the “Company”) (NASDAQ: NEO ) and reminds investors of the February 6, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you have incurred losses exceeding $100,000 invest in NeoGenomics stocks or options between February 27, 2020 and April 26, 2022 and want to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310). You can also click here for more information: www.faruqilaw.com/NEO.
There is no cost or obligation for you.
Faruqi & Faruqi is a leading national minority and women-owned securities law firm, with offices in New York, Pennsylvania, California and Georgia.
According to the lawsuit, during the class period, the defendants made false and misleading statements or failed to disclose the following: (1) the defendants told investors that they had a “full menu” of cancer screening tests with “every type of test modality you can use for cancer, including some of the fastest-growing new ones, like next-generation sequencing,” which has positioned the company as a “one-stop-shop for pathologists and gave NeoGenomics “a competitive edge” as the “go-to reference lab with a full menu for just about any type of cancer test you want to do.” (2) Defendants argued that NeoGenomics could “leverage” the allegedly “fixed cost” structure of its business to improve profitability as revenues grew and touted the company’s “robust compliance program… to ensure compliance with the myriad of… laws, regulations and government guidelines applicable to our business. »
At November 4, 2021NeoGenomics disclosed that it was “conducting an internal investigation with the assistance of outside counsel that is focused on certain consulting and service agreements’ compliance with federal health laws and regulations,” including “those relating to fraud, waste and abuse”, and had “established a reserve of $10.5 million for potential damages and liabilities associated with federal health care program revenues received over multiple years. »
Then on March 28, 2022NeoGenomics announced the departure of its CEO “effective immediately” and simultaneously reduced its financial guidance largely due to “higher than expected” costs.
Finally, on April 27, 2022, NeoGenomics disclosed that “increasing payroll and payroll costs” led to lower profits and higher operating expenses, and admitted that its cancer testing portfolio “is weighted by legacy testing” “as the market moves towards larger and more comprehensive panels”. The company further admitted that it had “not kept up” with competitors that offered more in-demand technologically advanced cancer screening tests.
These disclosures led to a dramatic decline in the value of NeoGenomics shares, causing significant harm to investors.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members directing and supervising the litigation on behalf of the putative class. Any putative class member may ask the Court to serve as lead plaintiff through counsel of their choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding the conduct of NeoGenomic to contact the company, including whistleblowers, former employees, shareholders and others.
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SOURCE Faruqi & Faruqi, LLP