SAN FRANCISCO, Oct. 12, 2022 (GLOBE NEWSWIRE) — Hagens Berman calls for Fulgent Genetics, Inc. FLGT Investors who have suffered significant losses Submit your losses now. A class action lawsuit alleging securities fraud was filed after Fulgent announced that the DOJ and SEC were investigating.
Fulgent Genetics, Inc. FLGT Class action lawsuit alleging securities fraud:
The litigation focuses on Fulgent’s previously claimed “very strong” and “really excellent” financial results.
The Complaint alleges that the Defendants made materially false and misleading statements and failed to disclose the following: (1) Fulgent performed medically unnecessary laboratory testing, engaged in improper billing practices related to laboratory testing, and paid compensation in violation of the Anti-Kickback Act or received and Stark Law; (2) accordingly, Fulgent would likely be subject to increased legal and regulatory scrutiny; and (3) Fulgent’s revenues, to the extent derived from unlawful conduct, were unsustainable.
According to the complaint, investors learned the truth on August 4, 2022 when Fulgent announced its Q2 2022 financial results and startled investors with its additional disclosure that the SEC was investigating the company’s 2018 – Q1 2020 financial reports and the DOJ investigated allegations of medically unnecessary laboratory testing, improper billing for laboratory testing, and compensation received or granted in violation of federal and California laws.
That news sent Fulgent’s stock price plummeting more than 17% over the next two trading days, wiping out over $300 million in shareholder value.
“We are focused on investors’ losses and proving that Fulgent lied about the legitimacy of its reported earnings and its growth prospects,” said Reed Kathrein, the partner at Hagens Berman who led the investigation.
If you have invested in Fulgent and suffer significant losses or have knowledge that could assist the firm’s investigations, Click here to discuss your legal rights with…
