NEW YORK, Oct. 24, 2022 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of those who acquired Fulgent Genetics. Inc. (“Fulgent” or the “Company”) FLGT Securities between March 22, 2019 and August 4, 2022 (the “Collection Period”). Investors have until November 21, 2022 to petition the court to appoint a lead plaintiff in the lawsuit.
Fulgent, along with its subsidiaries, provides COVID-19, molecular diagnostics and genetic testing services to physicians and patients in the United States and internationally.
On August 4, 2022, Fulgent released its second quarter 2022 financial results and announced, among other things, that the SEC is conducting an investigation into certain of the Company’s reports filed with the SEC from 2018 through the first quarter of 2020. The disclosure follows the company’s receipt of a civil investigation request from the U.S. Department of Justice “related to its investigation into allegations of medically unnecessary laboratory testing, improper billing of laboratory testing, and compensation received or provided in violation of the Anti-Kickback Statute and Stark Law.” As a result of this news, Fulgent’s stock price fell $3.88 per share, or approximately 6.09%, from $63.74 per share to a closing price of $59.86 on August 5, 2022.
The Complaint alleges that during the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose the following: (1) Fulgent had performed medically unnecessary laboratory testing, engaged in improper billing practices related to laboratory testing and delivery or receipt compensation in violation of the Anti-Kickback Statute and Stark Act; (2) accordingly, Fulgent would likely be subject to increased legal and regulatory scrutiny; (3) Fulgent’s earnings, to the extent derived from the foregoing unlawful conduct, were…
