Neogen Corporation Faces Securities Fraud Class Action Lawsuit
Neogen Corporation Faces Securities Fraud Class Action Lawsuit
Investors in Neogen Corporation, also recognized by its stock ticker NEOG, should stay informed as developments unfold regarding a class action lawsuit alleging securities fraud. This legal action is specific to investors who acquired common stock between January 5, 2023, and June 3, 2025. Individuals interested in participating have until September 16, 2025, to initiate a lead plaintiff motion.
Understanding the Nature of the Allegations
The lawsuit arises from significant concerns regarding the accuracy and honesty of the disclosures made by Neogen's leadership. The allegations assert that the company did not provide accurate information about its financial performance, leading investors to make decisions based on misleading or incomplete data.
Investors' Call to Action
If you experienced financial losses related to your investments in Neogen Corporation, it may be beneficial to explore options for potential recovery. For assistance, you can reach out to legal representatives specializing in securities fraud claims.
Critical Developments Impacting Neogen's Stock Performance
On January 10, 2025, Neogen made a shocking disclosure regarding its second-quarter earnings. The company announced a staggering $461 million in non-cash goodwill impairment charges tied to its acquisition of 3M Company. This revelation prompted a revision of its financial outlook, slashing revenue and EBITDA expectations.
The Impact on Investors
This news triggered a significant decline in Neogen's stock price, which plummeted by 5.4%, closing at $12.36 per share on January 10, 2025. For many investors, this sharp drop highlighted the severe ramifications of the company's earlier misleading statements.
Subsequent Financial Challenges for Neogen Corporation
Continuing challenges for Neogen included a revenue drop of 3.4% reported on April 9, 2025. Investors learned that integration issues were impacting operations, which was compounded by the unexpected resignation of the CEO, further denting investor confidence. This negative news led to another severe hit, as the stock tumbled by 28.7% to close at $5.02 per share.
Further Disclosures and Their Impact
As the company continued to grapple with financial difficulties, on June 4, 2025, Neogen shared more sobering news. They acknowledged that anticipated EBITDA margins for the fourth quarter would not meet previous forecasts due to unanticipated inventory write-offs. Investors felt the repercussions once again, with shares dipping to $4.96, a decline of 17.3% on that day.
The Details of the Class Action Lawsuit
The complaint holds that throughout the alleged class period, Neogen executives made false or misleading statements and concealed critical business and operational facts. Key allegations include the failure to admit inefficiencies in integrating 3M that would lead to impaired goodwill, along with the overarching concern regarding their misleading representations regarding the financial health and future prospects of the company.
Next Steps for Interested Investors
If you're an investor affected by the fluctuating stock prices of Neogen Corporation and wish to understand your potential claim options, it’s advisable to contact legal professionals who can provide insight into the proceedings. The Law Offices of Frank R. Cruz can be reached for more detailed discussions regarding this matter.
Contact Details for Further Information
For those wishing to learn more about the class action or have related questions, reach out to:
Law Offices of Frank R. Cruz
Telephone: 310-914-5007
Email: info@frankcruzlaw.com
Visit our website for more information.
Frequently Asked Questions
What is the timeframe for filing a lead plaintiff motion?
Investors must file a lead plaintiff motion by September 16, 2025, to participate in the class action.
What company is involved in the securities fraud lawsuit?
Neogen Corporation (NEOG) is the company facing allegations of securities fraud.
What were the major events that led to this lawsuit?
The lawsuit stems from significant financial disclosures, including a major goodwill impairment and failing to improve operational performance following their acquisition of 3M Company.
How can investors get involved in the lawsuit?
Investors may contact legal counsel to discuss their rights and the possibilities of joining the class action.
Where can I find more information about my rights as an investor?
For further details, individuals should reach out to legal experts or visit relevant securities law resources.
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