INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Sema4 Holdings Corp. (NASDAQ: SMFR, SMFRW) Shareholders
NEWTOWN, PA, September 22, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of purchasers of Sema4 Holdings Corp. (“Sema4” or the “Company”) (NASDAQ: SMFR, SMFRW) common stock or warrants between March 14, 2022, and August 15, 2022, inclusive (the “Class Period”).
Investors who purchased Sema4 common stock or warrants during the Class Period may move the U.S. District Court for the District of Connecticut to appoint them as lead plaintiff, no later than November 7, 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 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on the Sema4 Holdings Corp. Securities Class Action
Sema4, headquartered in Stamford, Connecticut, describes itself as “a patient-centered health intelligence company dedicated to advancing healthcare through data-driven insights.” Sema4 uses artificial intelligence (“AI”) to enable and deliver precision medicine as the standard of care.
The securities fraud Complaint alleges that, throughout the Class Period, Defendants made false and misleading statements, as well as failed to disclose material adverse facts about Sema4’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) there was a significant risk that Sema4 would reverse a material amount of revenue that it could not recoup from third party payors that was previously recognized; (ii) Selling prices for Sema4’s reproductive health segment were declining; (iii) and as a result, Sema4’s financial results would be adversely affected and, therefore, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
After the market closed on August 15, 2022, Sema4 announced that Defendant Schadt was stepping down from his roles as President and Chief R & D Officer and that the company was eliminating approximately 13% of its workforce as part of a series of restructuring and corporate realignments. Sema4 also revealed during a related conference call, that it had “reversed $30.1 million of revenue this quarter related to prior periods,” pursuant to negotiations with “one of [its] larger commercial payors regarding the potential recoupment of payments for Sema4 carrier screening services rendered from 2018 to early 2022.” On this news, the price of Sema4 common stock plummeted $0.80, or 33.3%, to close at $1.60 per share on August 16, 2022, on unusually heavy trading volume.
For more information, 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 844-696-7492 ext. 1
Email: [email protected]
About Edelson Lechtzin LLP
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.