Law Offices of Frank R. Cruz Encourages Neogen Corporation (NEOG) Investors to Inquire About Securities Fraud Class Action

Business Wire

28-07-2025

LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Neogen Corporation ('Neogen' or the 'Company') (NASDAQ: NEOG) common stock between , inclusive (the 'Class Period'). Neogen investors have until September 16, 2025 to file a lead plaintiff motion.
Law Offices of Frank R. Cruz Encourages Neogen Corporation (NEOG) Investors To Inquire About Securities Fraud Class Action
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IF YOU SUFFERED A LOSS ON YOUR NEOGEN CORPORATION (NEOG) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [e-mail], by telephone at [phone], or visit our website at www.frankcruzlaw.com.
What Happened?
On January 10, 2025, Neogen disclosed that its second quarter GAAP net income was significantly negative due to a $461 million non-cash goodwill impairment charge related to its acquisition of the 3M Company ('3M'). The Company also revised its full year outlook, cutting revenue and EBITDA guidance. Further, the Company also revealed that as of November 30, 2024, it had material weaknesses in its internal control over financial reporting.
On this news, Neogen's stock price fell $0.71, or 5.4%, to close at $12.36 per share on January 10, 2025, thereby injuring investors.
Then, on April 9, 2025, Neogen disclosed that quarterly revenue had fallen 3.4% due, in part, to integration issues. The Company also further cut its full year revenue and EBITDA outlook and revealed that its CEO would be stepping down.
On this news, Neogen's stock price fell $2.02, or 28.7%, to close at $5.02 per share on April 9, 2025.
Then, on June 4, 2025, Neogen disclosed that, while its fourth quarter fiscal 2025 financial results would be 'materially approximate [to] where [the Company] had put [its] guide,' it 'would expect EBITDA margin to probably be around the high-teens' compared to the previous quarter's 22%. The Company explained that EBITDA margins would likely 'be in the low-20s, if not for the elevated inventory write-offs.'
On this news, Neogen's stock price fell $1.04, or 17.3%, to close at $4.96 per share on June 4, 2025, thereby injuring investors further.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the integration with 3M was plagued with inefficiencies that Defendants knew would necessitate a goodwill impairment and would impact capital expenditures, revenues, and EBITDA margins; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Neogen common stock, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: [phone]
Email: [e-mail]
Visit our website at: www.frankcruzlaw.com
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.