SEMA4 HOLDINGS CORP. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Sema4 Holdings Corp.
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Sema4 Holdings Corp. (“Sema4” or the “Company”) (NASDAQ: SMFR) securities between March 14, 2022 and August 15, 2022, inclusive. The lawsuit seeks to recover Sema4 shareholders’ investment losses.
If you purchased securities in Sema4 Holdings Corp. between March 14, 2022 and August 15, 2022, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Sema4 is a health company that uses artificial intelligence to enable personalized medicine. The Company’s platform leverages longitudinal patient data, AI-driven predictive modeling, and genomics in combination with other data to deliver better outcomes for patients. Sema4 derives the majority of its revenue from Women’s Health and Oncology diagnostic solutions. Specifically, Women’s Health solutions include carrier screening, non-invasive prenatal testing, and newborn screening, while Oncology solutions include hereditary cancer testing, molecular profiling, and genomic data collection.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose: (1) that there was a significant risk that Sema4 would reverse a material amount of previously recognized revenue that it could not recoup from third party payors; (2) that the Company was experiencing declining selling prices for its reproductive health segment; and (3) that, as a result of the foregoing, Sema4’s financial results would be adversely affected.
On August 15, 2022, after the market closed, Sema4 announced changes to its research and development leadership team, including that Defendant Eric Schadt was stepping down from his roles as President and Chief R&D Officer. The Company also disclosed that it was eliminating approximately 13% of its workforce as part of a series of restructuring and corporate realignments. During a conference call, Sema4 revealed that it had “reversed $30.1 million of revenue this quarter related to prior periods” in connection with negotiations with “one of [Sema4’s] larger commercial payors regarding the potential recoupment of payments for Sema4 carrier screening services rendered from 2018 to early 2022.”
On this news, Sema4’s stock fell $0.80, or 33.3%, to close at $1.60 per share on August 16, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than November 7, 2022. 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.
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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