NEW YORK, Sept. 08, 2022 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announce that a class action lawsuit has been filed against Sema4 Holdings Corp. (“Sema4” or the “Company”) has been submitted. SMFR SMFRW))) in the United States District Court for the District of Connecticut on behalf of investors who purchased or otherwise acquired the common stock of Sema4 between March 14, 2022 and August 15, 2022, both dates inclusive (the “Collection Period”).
On August 15, 2022, after the market closed, Sema4 announced changes to its R&D leadership team, including the resignation of defendant Schadt from his roles as President and Chief R&D Officer. The company also announced that it will be shedding approximately 13% of its workforce as part of a series of corporate restructuring and realignments. During the related conference call, Sema4 announced that in connection with negotiations with “one of [Sema4’s] major commercial payers regarding the potential repayment of payments for Sema4 carrier screening services rendered from 2018 through early 2022.”
As a result of this news, Sema4’s stock fell $0.80, or 33.3%, on unusually high trading volume to close at $1.60 per share on August 16, 2022.
The lawsuit alleges that the defendants failed to disclose to investors: (1) that there was a significant risk that Sema4 would reverse a substantial amount of previously recognized revenue that it was unable to recover from third-party payers; (2) that the company experienced decreasing selling prices for its reproductive health segment; (3) that Sema4’s financial results would be adversely affected as a result of the foregoing; and (4) that as a result of the foregoing, defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked any reasonable basis.
Investors who have purchased or otherwise acquired Sema4 stock should contact the company before November…
