NEW YORK, Sept. 20, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Fulgent Genetics, Inc. (“Fulgent” or the “Company”) (NASDAQ: FLGT) and certain of its officers . The class action lawsuit, filed in the United States District Court for the Central District of California and registered as 22-cv-06764, is on behalf of a class of all persons and entities who purchased the listed securities on Fulgent’s stock exchange between March 22, 2019 and August 4, 2022, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its senior leaders.
If you are a shareholder who purchased Fulgent securities during the class period, you have until November 21, 2022 to ask the court to name you as the lead plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by email are encouraged to include their mailing address, phone number and number of shares purchased.
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Fulgent, together with its subsidiaries, provides COVID-19, molecular diagnostics and genetic testing services to physicians and patients in the United States and around the world. Accordingly, Fulgent must comply with federal anti-kickback law, which prohibits knowingly and deliberately paying “compensation” to induce or reward patient referrals or business generation involving any payable item or service. by federal health care programs, as well as the federal Stark Act, which prohibits a physician from making referrals for certain designated health services, including laboratory services, which are covered by the Medicare program, to an entity with which the physician or an immediate family member has a direct or indirect financial relationship.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Fulgent performed medically unnecessary laboratory tests, engaged in improper billing practices with respect to laboratory tests and provided or received compensation in violation of the Anti-Kickback Law and Stark Law; (ii) as a result, Fulgent was subject to increased legal and regulatory scrutiny; (iii) Fulgent’s income, to the extent that it arose from the aforementioned illicit conduct, was unsustainable; (iv) the foregoing, when disclosed, was likely to subject the Company to material financial and/or reputational harm; and (v) as a result, the Company’s public statements were materially false and misleading at all material times.
On August 4, 2022, Fulgent released its second quarter 2022 financial results, disclosing, among other things, that the United States Securities and Exchange Commission (“SEC”) was investigating some of the company’s reports filed with the SEC from 2018 through the first quarter of 2020. The disclosure follows the company’s receipt of a civil inquiry request from the U.S. Department of Justice “related to its investigation into allegations of medically unnecessary lab testing , improper charging for laboratory testing, and compensation received or provided in violation of anti-bribery law and Stark law.
On this news, Fulgent’s stock price fell $11.02 per share, or 17.29%, over the next two trading sessions, to close at $52.72 per share on August 8, 2022. .
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading law firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
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