Investors in Neogen Corporation Face Lawsuit Due to Losses
Key Details About Neogen Corporation's Legal Challenges
Neogen Corporation (NASDAQ: NEOG) has recently been in the spotlight due to significant losses experienced by its investors. This situation has prompted legal actions aimed at addressing the grievances of those who suffered financially. Investors should be made aware of developments concerning a class action lawsuit that has been initiated on their behalf.
Recent Financial Disclosures
Investors were taken aback on January 10, when Neogen announced a drastically negative GAAP net income for the second quarter, mainly due to an extensive $461 million non-cash goodwill impairment charge from its acquisition of the 3M Company. This disclosure included a revised yearly outlook, highlighting substantial cuts to both revenue and EBITDA forecasts. As of November, the company acknowledged critical weaknesses in its internal financial controls, raising further concerns among stakeholders.
The Impact on Stock Prices
The market reacted swiftly to these revelations. On the day of the announcement, Neogen's stock price tumbled by $0.71, marking a decline of 5.4% and closing at $12.36. This decline was just the beginning of a volatile period for investors.
Further Financial Complications
On April 9, additional troubling news emerged when Neogen reported a 3.4% drop in quarterly revenue, attributing this to integration challenges. Significantly, the company further slashed its annual revenue expectations and confirmed that its CEO would be resigning. Following this news, the stock price suffered a catastrophic drop of $2.02, equating to a 28.7% decrease, ending the day at $5.02.
Future Outlook and Challenges
The turmoil continued into June 2025, when Neogen provided a bleak forecast for its fourth quarter fiscal results, indicating anticipated EBITDA margins would fall to around 17%, considerably lower than the 22% in the previous quarter. This announcement led to an additional stock price decrease of $1.04, or 17.3%, bringing the closing price to $4.96 per share.
The Lawsuit Explanation
The lawsuit centers on allegations that Neogen and its executives failed to disclose essential information that could have impacted investors' decisions during the class period between January 5, 2023, and June 3, 2025. The assertion claims the company made materially misleading statements regarding its operational efficiency and the implications of its acquisition strategy, which were critical to investor confidence.
Eligibility to Participate
Investors who acquired Neogen common stock during the specified class period may be eligible to participate in the lawsuit aimed at securing their rights and losses. Specifically, those impacted may move to request an appointment as lead plaintiff, with the deadline set for September 16.
Next Steps for Investors
Investors looking to engage in this legal action or those who have questions about their rights should reach out to the law firm Glancy Prongay & Murray LLP. They are actively encouraging affected individuals to inquire about pursuing claims under federal securities laws. The contact information for the firm is as follows:
Contact Information:
Charles Linehan, Esq.
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, CA 90067
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Email: shareholders@glancylaw.com
Visit: www.glancylaw.com
Frequently Asked Questions
What is the lawsuit about?
The lawsuit addresses allegations that Neogen Corp misled investors about its financial condition and operational efficiency.
Who is eligible to participate in the class action?
Investors who purchased Neogen common stock during the class period from January 5, 2023, to June 3, 2025, may be eligible to participate.
What happened leading to the lawsuit?
Neogen faced significant financial losses due to poor management decisions, including a major goodwill impairment.
Who should I contact for more information?
Contact Glancy Prongay & Murray LLP for details regarding the class action lawsuit and your potential involvement.
What are the next steps I should take?
If you suffered losses, consider reaching out to Glancy Prongay & Murray LLP to explore potential claims.
About The Author
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