Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased NeoGenomics, Inc. (“NeoGenomics” or the “Company”) (NASDAQ: NEO) securities between February 27, 2020 and April 26, 2022, inclusive (the “Class Period”). NeoGenomics investors have until February 6, 2023 to file a lead plaintiff motion.
Investors suffering losses on their NeoGenomics investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On November 4, 2021, NeoGenomics disclosed 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.” The Company also revealed 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, NeoGenomic’s stock price fell $8.18, or 17.6%, to close at $38.35 per share on November 4, 2021, thereby injuring investors.
Then, on March 28, 2022, after the market closed, NeoGenomics announced that its Chief Executive Officer, Mark Mallon, had resigned, less than a year after accepting the position. The Company also stated that revenue for first quarter 2022 would be “below the low end of its prior guidance of $118 - $120 million” and withdrew its fiscal 2022 guidance.
On this news, NeoGenomics’ stock price fell $5.30, or 29.8%, to close at $12.49 per share on March 29, 2022, thereby injuring investors further.
Then, on April 27, 2022, NeoGenomics announced disappointing financial results for Q1 2022, including an EBITDA loss of $19 million, that consolidated gross profit had decreased by 8% compared to the previous year, and that operating expenses had increased by 59% compared to the previous year.
On this news, NeoGenomics’s stock price fell $0.41, or 3.8%, to close at $10.44 per share on April 27, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) 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; (2) 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, leading to operational challenges, decreased lab efficiency, and increased testing turnaround times; (3) NeoGenomics violated federal healthcare laws and regulations related to fraud, waste, and abuse; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased NeoGenomics securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
