Daniel Goldenberg, et al. v. NeoGenomics Case

On April 27, 2022, NeoGenomics (NEO) disclosed & admitted material negative facts:

• “higher payroll and payroll related costs” which drove decreased profit and increased operating expenses,

• its portfolio of cancer tests “is weighted to legacy” tests “while the market is moving towards larger, more comprehensive panels.”

• it had “not kept up” with competitors that were offering more in-demand technologically advanced cancer tests.

Earlier, on March 28, 2022, NeoGenomics disclosed the departure of its CEO and simultaneously reduced its financial guidance largely due to “higher than anticipated” costs.

Going back on November 4, 2021, NeoGenomics revealed that it was, “conducting an internal investigation 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.”

These appeared facts and disclosures caused the value of NeoGenomics stock to decline dramatically, resulting in significant harm to investors.

Taking all representations and appeared facts into account, Investors have reasons to suspect the Company and its Leaders violated the rights of shareholders, damaging the value of their holdings.