NEO Lawsuit – Neogenomics Inc.
Is There A Neogenomics Lawsuit?
Yes. There is a Class Action Lawsuit. Neogenomics Inc. (NEO:NASDAQ) Class Action Lawsuit was filed on December 6, 2022 at the Southern District of New York on behalf of the shareholders.
On November 4, 2021, during the Company’s 3Q21 Earnings Call, Defendant McKenzie revealed that: “We are voluntarily 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.”
She added that, “[b]ased on preliminary findings of this internal investigation, we voluntarily notified the Office of the Inspector General of the U.S. Department of Health and Human Services of our investigation in November 2021.
Though our review of this matter is ongoing, we have accrued a reserve of $10.5 million for potential damage and liabilities associated with the federal healthcare program revenue received spanning multiple years in connection with the agreements at issue that were identified during the course of this internal investigation.”
On this news, the price of NeoGenomics common stock fell $8.18 per share, or 17.6%, from $46.53 per share on November 3, 2021 to $38.35 per share at the close of trading on November 4, 2021.”
On March 28, 2022, NeoGenomics filed a Current Report on Form 8-K with the SEC (the “March 28, 2022 8-K”), disclosing 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.”
Also in the March 28, 2022 8-K, NeoGenomics disclosed that: “The Company currently expects revenue for Q1 2022 may be below the low end of its prior guidance of $118 – $120 million and EBITDA for Q1 2022 will be below the low end of its prior guidance of $(15) – $(12) million. T
he larger than anticipated EBITDA loss was primarily driven by higher than anticipated Clinical Services cost of goods sold. The Company intends to take immediate action to address performance and costs.
Additionally, the Company has withdrawn its 2022 annual financial guidance issued February 23, 2022.”
On this news, the price of NeoGenomics common stock fell $5.30 per share, or 29.8%, from $17.79 per share on March 28, 2022 to $12.49 per share at the close of trading on March 29, 2022.
Before the start of trading on April 27, 2022, NeoGenomics filed a Current Report on Form 8-K with the SEC disclosing the Company’s first-quarter 2022 financial results (the “April 27, 2022 8-K”).
In the April 27, 2022 8-K, NeoGenomics revealed that revenue for the quarter was $117 million and EBITDA loss was $19 million. In the April 27, 2022 8-K, the Company further revealed that: “Consolidated gross profit for the first quarter of 2022” had “decreased 8.0% compared to the first quarter of 2021” in part due to “higher payroll and payrollrelated costs.”
NeoGenomics also revealed that: “Operating expenses increased by $34 million, or 59%, compared to the first quarter of 2021” driven, in part, by “higher payroll and payrollrelated costs to support the Company’s strategic growth initiatives.”
Also on the call, Bonello stated, “we’ve seen a notable decrease in lab efficiency over the course of the past year. This decrease is largely attributable to increased complexity of both our product offerings and our lab processes, due in part to efforts to respond to customer requests for customization. We are already taking action to reduce this complexity.
These actions include eliminating low-margin services, streamlining our NGS processes to drive reductions in labor, supplies and bioinformatics costs, while simultaneously improving turnaround time and implementing AI to increase lab tech productivity.”
Summarizing, Bonello further stated: “We view 2022 as a rebuilding year, where our primary focus is to improve our current product offering, drive operational efficiency, . . . and lay a foundation to support sustainable, profitable growth in 2023 and beyond.”
On this news, the price of NeoGenomics common stock fell $0.41 per share, or 3.8%, from $10.85 per share on April 26, 2022 to $10.44 per share at the close of trading on April 27, 2022.
Neogenomics Lawsuit, What Is It about?
A lawsuit (Neogenomics Class Action Lawsuit) was filed on December 06, 2022 on behalf of the shareholders who held common stock on (NASDAQ:NEO), because during the Company’s 3Q21 Earnings Call, Defendant McKenzie revealed that: “We are voluntarily 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.”
She added that, “[b]ased on preliminary findings of this internal investigation, we voluntarily notified the Office of the Inspector General of the U.S. Department of Health and Human Services of our investigation in November 2021.
Though our review of this matter is ongoing, we have accrued a reserve of $10.5 million for potential damage and liabilities associated with the federal healthcare program revenue received spanning multiple years in connection with the agreements at issue that were identified during the course of this internal investigation.”
On this news, the price of NeoGenomics common stock fell $8.18 per share, or 17.6%, from $46.53 per share on November 3, 2021 to $38.35 per share at the close of trading on November 4, 2021.”
What Is The Deadline For The NEO Lawsuit?
The deadline for a Lead Plaintiff is February 6, 2023. As a shareholder, you also want to submit your information as soon as you can, so you do not miss out on this class action and you will receive regular updates on the progress of the case, including a settlement announcement.
How Much Was The Stock Loss To NEO Stock?
NEO stock fell $8.18 per share, or 17.6%, from $46.53 per share on November 3, 2021 to $38.35 per share at the close of trading on November 4, 2021.
Additionally, the price of NeoGenomics common stock fell $5.30 per share, or 29.8%, from $17.79 per share on March 28, 2022 to $12.49 per share at the close of trading on March 29, 2022.
Furthermore, the price of NeoGenomics common stock fell $0.41 per share, or 3.8%, from $10.85 per share on April 26, 2022 to $10.44 per share at the close of trading on April 27, 2022.
What Is Lawsuit Complaint Against Neogenomics About?
The NEO class action lawsuit (Neogenomics Class Action Lawsuit) has been filed on behalf of investors who purchased Neogenomics Class Action Lawsuit (NEO) securities between February 27, 2020 – April 26, 2022, inclusive. For more on the NEO Lawsuit please contact us today.
According to the Neogenomics lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
and/or misleading statements and/or failed to disclose that:
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.”
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.”
If you suffered a loss in NEO, you have until February 6, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Securities Fraud Class Action Attorneys
Levi & Korsinsky, LLP, have represented Shareholders for over 20 years to secure hundreds of millions of dollars for aggrieved shareholders.
Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States and has built a track record of wining high-stake cases.
What Is Involved In The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired NEO securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The NEO class-action lawsuit is directed by the lead plaintiff. To litigate the Neogenomics Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the Neogenomics Class Action Lawsuit.
What Does Neogenomics Do?
NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States, Europe, and Asia. It operates through, Clinical Services and Pharma Services segments.
The company offers testing services to hospitals, reference labs, pathologists, oncologists, clinicians, pharmaceutical firms, and researchers.
It provides cytogenetics testing services to study normal and abnormal chromosomes and their relationship to diseases; fluorescence in-situ hybridization testing services that focus on detecting and locating the presence or absence of specific DNA sequences and genes on chromosomes; flow cytometry testing services to measure the characteristics of cell populations; and immunohistochemistry and digital imaging testing services to localize cellular proteins in tissue section, as well as to allow clients to visualize scanned slides, and perform quantitative analysis for various stains.
The company also provides molecular testing services, which focus on the analysis of DNA and/or RNA, and the structure and function of genes at the molecular level; morphologic analysis, which is the process of analyzing cells under the microscope by a pathologist for the purpose of diagnosis; and testing services in support of its pharmaceutical clients’ oncology programs covering discovery and commercialization, as well as acts as a reference laboratory supplying anatomic pathology testing services.
It has a strategic alliance agreement and laboratory services agreement with Inivata Limited. The company was founded in 2001 and is headquartered in Fort Myers, Florida.
Deadline of Submission is Until February 6, 2023
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