Fulgent Genetics, Inc. Stockholder Announcement: Robbins LLP
SAN DIEGO, Oct. 4, 2022 (GLOBE NEWSWIRE) — The class: Law firm for shareholder rights Robbins LLP reminds investors that a shareholder has filed a class action lawsuit on behalf of all persons and entities who purchased or otherwise acquired securities of Fulgent Genetics, Inc. (NASDAQ: FLGT) between March 22, 2019 and August 4, 2022, alleging Violations of the Securities Exchange Act of 1934. Fulgent provides COVID-19, molecular diagnostics and genetic testing services to physicians and patents in the United States and internationally.
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What is it about in this case: The US Department of Justice is investigating Fulgent Genetics, Inc. (FLGT) for violations of the Anti-Kickback Statute and the Stark Act
According to the Complaint, the Defendants failed to disclose the following during the Class Action: (i) Fulgent conducted medically unnecessary laboratory testing, engaged in improper billing practices related to laboratory testing and in violation of the Anti-Kickback Statute and Stark Act; (ii) accordingly, Fulgent would likely become subject to increased legal and regulatory scrutiny; and (iii) Fulgent’s revenues, to the extent derived from the foregoing unlawful conduct, were unsustainable.
On August 4, 2022, Fulgent reported its second quarter 2022 financial results and announced that the SEC is conducting an investigation into certain of the Company’s reports filed with the SEC from 2018 through the first quarter of 2020. The disclosure followed the company’s receipt of a civil suit from the U.S. Department of Justice “related to its investigation into allegations of medically unnecessary laboratory testing, improper billing of laboratory testing, and compensation received in violation of the Anti-Kickback Statute and Stark Act or have been granted”. As a result of this news, Fulgent’s share price fell $11.02, or 17.29%, in the following…
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