NEW YORK, Sept. 20, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Fulgent Genetics, Inc. (“Fulgent” or the “Company”) (NASDAQ: FLGT) and certain of its officers. The class action lawsuit, filed in the United States District Court for the Central District of California and filed number 22-cv-06764, is on behalf of a group of individuals and entities who purchased the publicly traded securities of Fulgent Securities between March 22nd , 2019 and August 4, 2022, both dates inclusive (the “Collection Period”), in an attempt to recover damages caused by Defendants’ violations of the federal securities laws and remedies under Sections 10(b) and 20( a) the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 made thereunder, against the Company and certain of its senior officers.
If you are a shareholder who purchased Fulgent securities during the class action period, you have until November 21, 2022 to ask the court to appoint you as lead plaintiff in the class action. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this promotion, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, ext. 7980. Persons inquiring by email are asked to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
Fulgent, along with its subsidiaries, provides COVID-19, molecular diagnostics and genetic testing services to physicians and patients in the United States and internationally. As a result, Fulgent must comply with the federal anti-kickback statute, which prohibits knowingly and intentionally paying “compensations” to induce or reward patient referrals or to transact business in items or services that are payable by the state healthcare programs. and the state Stark statute, which prohibits a physician from making referrals for certain designated health services, including laboratory services, covered by the Medicare program to an entity with which the physician or an immediate family member has a direct or indirect connection financial relationship.
The lawsuit alleges that the defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies throughout the class period. Specifically, the Defendants made false and/or misleading statements and/or failed to disclose the following: (i) Fulgent performed medically unnecessary laboratory testing, engaged in improper billing practices related to laboratory testing, and violated the Anti-Kickback Statute and Stark Act ; (ii) accordingly, Fulgent would likely become subject to increased legal and regulatory scrutiny; (iii) Fulgent’s earnings, to the extent derived from the foregoing unlawful conduct, were unsustainable; (iv) the foregoing, if discovered, would be likely to subject the Company to significant financial and/or reputational damage; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 4, 2022, Fulgent reported its second quarter 2022 financial results and announced, among other things, that the US Securities and Exchange Commission (“SEC”) is conducting an investigation into certain of the Company’s reports filed with the SEC from 2018-2018 were made in the first quarter of 2020. The disclosure follows receipt of a civil investigative request from the U.S. Department of Justice “in connection with the investigation of allegations of medically unnecessary laboratory testing, improper billing for laboratory testing, and the receipt or payment of Anti-Kickback Statute and Stark Act compensation.” .
As a result of this news, Fulgent’s stock price fell $11.02 per share, or 17.29%, in the following two trading sessions to close on August 8, 2022 at $52.72 per share.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading law firms specializing in corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, best known as Dean of the Class Bar Association, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he founded and fights for the rights of victims of securities fraud, fiduciary breaches and corporate wrongdoing. The firm has recovered numerous multi-million dollar claims on behalf of group members. See www.pomlaw.com
CONTACT:
Robert S Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
