Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In NeoGenomics To Contact Him Directly To Discuss Their Options
NEW YORK, NY / ACCESSWIRE / January 23, 2023 / 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 suffered losses exceeding $100,000 investing in NeoGenomics stock or options between February 27, 2020 and April 26, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may alsoclick here for additional information: www.faruqilaw.com/NEO.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
According to the lawsuit, during the class period, Defendants made false and misleading statements or failed to disclose the following: (1) Defendants represented to investors that it had a "comprehensive menu" of cancer tests with "every kind of testing modality that you can use for cancer, including some of the fast-growing new ones, like next-generation sequencing," which positioned the Company as a "one-stop-shop" for pathologists and gave NeoGenomics "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." (2) Defendants represented that NeoGenomics could "leverage" the supposedly "fixed cost" structure of its business to improve profitability as revenue increased and touted the Company's "robust Compliance Program . . . to ensure compliance with the myriad of . . . laws, regulations and governmental guidance applicable to our business."
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."
Next, 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.
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." The Company further admitted that it had "not kept up" with competitors that were offering more in-demand technologically advanced cancer tests.
These disclosures caused the value of NeoGenomics stock to decline dramatically, resulting in significant harm to investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding NeoGenomic's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE: Faruqi & Faruqi, LLP
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