Invested in
NeoGenomics?
Attention NeoGenomics investors: contact investor lawyers for a free evaluation of your potential claims for compensation today.
- Did you invest in NeoGenomics, Inc. (NASDAQ: NEO) in or before February 2020 and still hold your shares?
- Are you concerned about the NEO stock price decline following reported decline in revenue, increased costs, and alleged violation of federal healthcare laws and regulations related to fraud, waste, and abuse?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Free Case Evaluation
The NeoGenomics Class Action Investigation page is the resource for investors who bought NeoGenomics shares in or before February 2020 and would like to evaluate compensation claims.
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Posted February 27, 2023
NeoGenomics Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating alleged securities violations, corporate misconduct, and misrepresentations, as well as questionable business practices involving NeoGenomics, Inc., and have identified potential areas of concern for NeoGenomics investors.
What NeoGenomics Investors May Do
NEO investors interested to evaluate potential options to seek compensation and/or pursue claims related to their NeoGenomics investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in NeoGenomics, Inc.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned NEO stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Has NeoGenomics Been Accused of Misconduct?
NeoGenomics, Douglas Vanoort, Mark Mallon, Kathryn Mckenzie, and William Bonello, have been the subject of a recent class action lawsuit alleging misconduct against them. The lawsuit is currently pending.
NeoGenomics and its control persons are accused, among others, of allegedly making materially false and misleading statements about NeoGenomics having a “comprehensive menu” of cancer tests and being a “one-stop-shop” for cancer testing, when in reality the company allegedly failed to offer the most technologically advanced NGS tests.
The complaint further alleged that contrary to representations made to investors, NeoGenomics had to incur variable costs as they hired more employees to handle the increased demand for complex customized testing due outdated portfolio of tests. This allegedly led to operational difficulties, reduced lab efficiency, and longer testing turnaround times.
Furthermore, NeoGenomics was accused of failure to comply with federal healthcare laws and regulations related to fraud, waste, and abuse.
Was NeoGenomics Subject to an Internal Investigation?
In a quarterly report filed by NeoGenomics in early November 2021, the company disclosed it voluntarily commenced an investigation into “certain consulting and service agreements” and their compliance with “federal healthcare laws and regulations, including those relating to fraud, waste and abuse.”
NeoGenomics further disclosed it notified the Office of Inspector General of the U.S. Department of Health and Human Services, and that as of September 2021, NeoGenomics has accrued a reserve of $10.5 million “for potential damages and liabilities” associated with the agreements subject to the internal investigation. The news was reportedly followed by a decline in price per NEO share.
What Happened to NeoGenomics CEO?
In an 8-K Report dated March 2022, NeoGenomics announced Mark W. Mallon was to step down from his positions as CEO and member of the Board of Directors. The disclosure further noted that the departure was not the result of disagreements, inappropriate action or accounting irregularity.
Did NeoGenomics Report Disappointing Financial Results?
The same March 2022 filing disclosed that the NeoGenomics has withdrawn its 2022 annual financial guidance issued February 23, 2022, and expected both the revenue for Q1 2022 and EBITDA for Q1 2022 to be below the low end of its previous guidance, attributing the larger than anticipated EBITDA loss to “higher than anticipated Clinical Services cost of goods sold.”
A month later, NeoGenomics announced its First-Quarter 2022 Results. The disclosure quoted Lynn Tetrault, Executive Chair of NeoGenomics, characterizing the company’s performance for the first quarter as “disappointing and inconsistent,” and disclosing a decrease of 8% in gross profit reportedly caused by, among others, “higher payroll and payroll-related costs”. The company also disclosed an increase in operating expenses, a net loss of $49 million, and negative $19 million adjusted EBITDA.
Do NeoGenomics Shareholders Have Claims for Compensation?
Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and are evaluating potential claims for compensation and/or other redress on behalf of NEO shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are a NeoGenomics investor concerned about your investment and/or its value, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, NeoGenomics investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The NeoGenomics Class Action Investigation page is not affiliated with NeoGenomics, Inc. There has not been an adjudication on the merits of the cases referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
Recent Investigations
DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.
