SAN DIEGO–(BUSINESS WIRE)–The class: The shareholder rights law firm Robbins LLP informs investors that a shareholder has filed a class action lawsuit on behalf of all persons and entities who owned securities of Fulgent Genetics, Inc. (NASDAQ: FLGT) between March 22, 2019 and August 4, 2022. bought or otherwise acquired. for violations of the Securities Exchange Act of 1934. Fulgent provides COVID-19, molecular diagnostics and genetic testing services to physicians and patents in the United States and internationally.
If you would like more information about Fulgent Genetic Inc.’s wrongdoing, click here.
What is it about in this case: The US Department of Justice is investigating Fulgent Genetics, Inc. (FLGT) for violations of the Anti-Kickback Statute and the Stark Act
According to the Complaint, the Defendants failed to disclose the following during the Class Action: (i) Fulgent conducted medically unnecessary laboratory testing, engaged in improper billing practices related to laboratory testing and in violation of the Anti-Kickback Statute and Stark Act; (ii) accordingly, Fulgent would likely become subject to increased legal and regulatory scrutiny; and (iii) Fulgent’s earnings, to the extent derived from the foregoing unlawful conduct, were unsustainable.
On August 4, 2022, Fulgent reported its second quarter 2022 financial results and announced 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 followed the company’s receipt of a civil suit 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 in violation of the Anti-Kickback Statute and Stark Act or have been granted”. As a result of this news, Fulgent’s stock price fell $11.02, or 17.29%, in the following two trading sessions to close on August 8, 2022 at $52.72 per share.
Next Steps: If you purchased Fulgent Genetics, Inc. stock between March 22, 2019 and August 4, 2022, you have until November 21, 2022 to petition the court to appoint your lead plaintiff in the class action. A lead plaintiff is a representative party acting on behalf of other group members in conducting the litigation. You do not have to be present at the case to be eligible for a recovery.
All representations are on a contingency fee basis. Shareholders pay no fees or costs.
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About Robbins LLP: Robbins LLP’s attorneys and staff are recognized leaders in shareholder rights disputes and have worked since 2002 to help shareholders recover losses, improve corporate governance and hold company executives accountable for their wrongdoing. To be notified in a class action lawsuit against Fulgent Genetics, Inc. or to receive free alerts when company executives commit wrongdoing, join Stock Watch today.
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