Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of shareholders of Myriad Genetics (“Myriad” or the “Company”) (NASDAQ: MYGN) between September 2, 2016, and August 13, 2019, both dates inclusive (the “Class Period”).
If you purchased Myriad securities and/or would like to discuss your legal rights and options please click “Join Class Action” above.
New York, New York—Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of shareholders of Myriad Genetics (“Myriad” or the “Company”) (NASDAQ: MYGN) between September 2, 2016, and August 13, 2019, both dates inclusive (the “Class Period”). The lawsuit filed in the United States District Court for the District of Utah seeks to recover damages for Myriad investors under the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff, you must move the Court no later than November 26, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) GeneSight lacked evidence or information sufficient to support the tests in their current form, including their purported benefits; (ii) the U.S. Food and Drug Administration (FDA) had requested changes to GeneSight and questioned the validity of the tests purported benefits; (iii) Myriad had been in ongoing discussions with the FDA regarding the FDA’s requested changes to GeneSight; (iv) Myriad’s acquisition of Counsyl and thereby, Foresight caused the Company to incur the risk of suffering from lower reimbursement for its expanded carrier screening tests, which had the potential to, and actually did, materialize into a material negative impact on the Company’s revenue; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On August 13, 2019, during after-market hours, Myriad issued an earnings release. In that release Myriad’s CEO announced that revenue in the fourth quarter was two percent below expectations due to lower reimbursement for the company’s expanded carrier screening test. Later that day, in an earnings conference call with investors and analysts, R. Bryan Riggsbee, Myriad’s Chief Financial Officer, revealed that “the FDA requested changes to the GeneSight test offering” after Myriad had provided the FDA with clinical evidence and other information to support GeneSight Psychotropic, and that the Company has “been in ongoing discussions with the FDA regarding its request.” Riggsbee continued by stating that “[a]lthough [Defendants] continue to disagree the changes to the tests are required, on August 10, 2019, [Defendants] submitted a proposal regarding the reporting of GeneSight test results to healthcare providers that we believe address the FDA’s principal concerns.”
Also later that day, Myriad filed an Annual Report on Form 10-K with the SEC, reporting the Company’s financial and operating results for the fiscal year ended June 30, 2019 (the “2019 10-K”). In the 2019 10-K, Defendants disclosed that the FDA had questioned whether the validity of GeneSight’s purported benefits had been established. The 2019 10-K also revealed that, since at least late 2018, the FDA had increasingly questioned the claims of marketed genetics tests, such as GeneSight.
On this news, Myriad’s stock price fell $19.05 per share, or 42.76%—nearly half of the Company’s total stock value—to close at $25.50 per share on August 14, 2019.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Matthew E. Guarnero Bernstein Liebhard LLP
(877) 779-1414 MGuarnero@bernlieb.com