INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Fulgent Genetics, Inc. (NASDAQ: FLGT) Shareholders
NEWTOWN, PA, September 21, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of purchasers of Fulgent Genetics, Inc. (“Fulgent” or the “Company”) (NASDAQ: FLGT) common stock between March 22, 2019, and August 4, 2022, inclusive (the “Class Period”).
Investors who purchased Fulgent common stock during the Class Period may move the U.S. District Court for the Central District of California to appoint them as lead plaintiff, no later than November 21, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 1-844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on the Fulgent Genetics, Inc. Securities Class Action
Fulgent is a full-service genomic testing company build around a foundational technology platform. Fulgent has a diverse testing menu and is focused on transforming patient care in oncology, anatomic pathology, infectious diseases, and reproductive health. Together with its subsidiaries, Fulgent provides COVID-19, molecular diagnostic, and genetic testing services to physicians and patients in the U.S and internationally.
The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements regarding Fulgent’s business, operations, and compliance policies. Specifically, it is alleged that Fulgent had been conducting medically unnecessary laboratory testing, engaging in improper billing practices in relation to laboratory testing, and providing or receiving payments in violation of the Anti-Kickback Statute (which prohibits the knowing and willful payment of remuneration to induce or reward patient referrals or the generation of business involving any item or service payable by federal health care programs) and the Stark Law (which prohibits a physician from making referrals of certain designated health services, including laboratory services, that are covered by Medicare, to an entity with which the physician or an immediate family member has a direct or indirect financial relationship). Accordingly, Fulgent was likely to become subject to enhanced legal and regulatory scrutiny, which rendered Fulgent’s revenues — to the extent they were derived from the alleged unlawful conduct – unsustainable. Fulgent would likely be subject to significant financial and reputational harm when the foregoing alleged violations of law were revealed and, as a result, Fulgent’s public statements were materially false and misleading at all relevant times.
On August 4, 2022, Fulgent released its second quarter 2022 financial results, disclosing that the SEC was investigating certain of Fulgent’s financial reports filed with the SEC from 2018 through the first quarter of 2020. This disclosure followed the Company’s receipt of a civil investigative demand issued by the U.S Department of Justice concerning “its investigation of allegations of unnecessary laboratory testing, improper billing for laboratory testing, and remuneration received or provided in violation of the Anti-Kickback Statute and the Stark Law.” On this news, the price of Fulgent common stock plummeted $11.02 per share, or 17.29%, over the next two trading sessions, to close at $52.72 per share on August 8, 2022.
For more information about the securities fraud class action and related litigation, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.