Myriad Genetics (MYGN) $77.5M GeneSight Case Settlement

• Myriad Genetics supposedly misled about their GeneSight test's development and the company's financial situation;

• $MYGN fell 42.76% and lost $1.56B of its market cap, damaging investors;

• Myriad Genetics agreed to pay $77.5M to investors to resolve the claims.

On August 13, 2019, Myriad announced its disappointing financial results for the Q4 and the full year 2019. On the same day, Myriad also disclosed that “the FDA had requested changes to the GeneSight test offering”, and that Myriad had “been in ongoing discussions with the FDA regarding its request.”

On this news, $MYGN fell 42.76% and lost $1.56B of its market capitalization, damaging investors.

Later, Myriad disclosed a $18M overstatement of revenue from its hereditary cancer tests. And finally, Myriad shocked investors by announcing that the CEO was suddenly leaving the company.

It is claimed that $MYGN is accused of making false statements and neglecting to reveal the following details:

• Myriad falsely represented the level of evidence supporting the effectiveness of GeneSight;

• The test's accuracy was based on studies that had significant flaws in their methodology;

• Myriad also left out important information about the FDA's investigation into the test.

Any Investor who purchased $MYGN between August 2017 and February 2020 may be eligible for a payout.