A lawsuit was filed on behalf of investors in Fulgent Genetics, Inc. (NASDAQ:FLGT) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 10/05/2022 -- An investor, who purchased shares of Fulgent Genetics, Inc. (NASDAQ: FLGT), filed a lawsuit over alleged violations of Federal Securities Laws by Fulgent Genetics, Inc.
Investors who purchased shares of Fulgent Genetics, Inc. (NASDAQ: FLGT) have certain options and for certain investors are short and strict deadlines running. Deadline: November 21, 2022. NASDAQ: FLGT investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Temple City based Fulgent Genetics, Inc., together with its subsidiaries, provides COVID-19, molecular diagnostic, and genetic testing services to physicians and patients in the United States and internationally. As a result, Fulgent Genetics, Inc must comply with the federal 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 the Federal health care programs, as well as the federal Stark Law, which prohibits a physician from making referrals for certain designated health services, including laboratory services, that 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.
On August 4, 2022, Fulgent Genetics, Inc released its second quarter 2022 financial results, disclosing, among other items, that the US Securities and Exchange Commission ("SEC") was 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 investigative demand issued by the U.S. Department of Justice "related to its investigation of allegations of medically unnecessary laboratory testing, improper billing for laboratory testing, and remuneration received or provided in violation of the Anti-Kickback Statute and the Stark Law.
The plaintiff claims that between March 22, 2019 and August 4, 2022, the Defendants made false and/or misleading statements and/or failed to disclose that Fulgent Genetics, Inc had been conducting medically unnecessary laboratory testing, engaging in improper billing practices in relation to laboratory testing, and providing or receiving remuneration in violation of the Anti-Kickback Statute and Stark Law, that accordingly, Fulgent Genetics, Inc was likely to become subject to enhanced legal and regulatory scrutiny, that Fulgent's revenues, to the extent they were derived from the foregoing unlawful conduct, were unsustainable, that the foregoing, once revealed, was likely to subject the Company to significant financial and/or reputational harm, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Fulgent Genetics, Inc. (NASDAQ: FLGT) have certain options and should contact the Shareholders Foundation.
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