Myriad Genetics, Inc. Class Action Lawsuit
- Company Name
- Myriad Genetics, Inc.
- Stock Symbol
- Class Period
- September 2, 2016 to August 13, 2019
- Motion Deadline
- November 26, 2019
- District of Utah
On September 27, 2019, the Myriad Genetics, Inc. class action lawsuit was filed charging Myriad Genetics and certain of its officers with violations of the Securities Exchange Act of 1934. The Myriad Genetics class action lawsuit was commenced in the District of Utah on behalf of purchasers of Myriad Genetics securities between September 2, 2016 and August 13, 2019 (the “Class Period”) and is captioned Silverman v. Myriad Genetics, Inc., No. 2:19-cv-00707.
Myriad Genetics is a molecular diagnostic company that develops and markets predictive, personalized, and prognostic medicine tests worldwide. Myriad Genetics offers, among its other products, GeneSight, a DNA genotyping test to aid psychotropic drug selection for depressed patients, and ForeSight, a prenatal test in the expanded carrier screening market for future parents to assess their risk of passing on a recessive genetic condition to their offspring.
On July 31, 2018, Myriad Genetics announced that it had closed its acquisition of Counsyl, Inc. (“Counsyl”), which provided Myriad Genetics with two new products – ForeSight and Prelude – in the expanded carrier screening and non-invasive prenatal testing markets, respectively. Myriad Genetics estimated that the market for these tests would grow to approximately three million tests performed in the United States and $1.5 billion over the next five years.
The Myriad Genetics class action lawsuit alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding Myriad Genetics’ business, operations, and prospects. Specifically, defendants failed to disclose that: (i) GeneSight lacked evidence or information sufficient to support the test in its current form, including the test’s purported benefits; (ii) the U.S. Food and Drug Administration (“FDA”) had requested changes to GeneSight and questioned the validity of the test’s purported benefits; (iii) Myriad Genetics had been in ongoing discussions with the FDA regarding its requested changes to GeneSight; and (iv) Myriad Genetics’ acquisition of Counsyl – and thereby, Foresight – caused Myriad Genetics to incur the risk of suffering from lower reimbursement for its expanded carrier screening tests, which had the potential to, and actually did, materialize into a negative impact on Myriad Genetics’ revenue. As a result of this information being withheld from the market, Myriad Genetics securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $50 per share.
Then on August 13, 2019, after the market closed, Myriad Genetics reported its fiscal fourth quarter and full year 2019 financial results. In the earnings release, Mark C. Capone, Myriad Genetics’ President and Chief Executive Officer, disclosed that, “[u]nfortunately, revenue in the fourth quarter was two percent below expectations largely due to lower reimbursement for [Myriad Genetics’] expanded carrier screening test” – i.e., ForeSight. Later that day, in an earnings conference call with investors and analysts, R. Bryan Riggsbee, Myriad Genetics’ Chief Financial Officer, revealed that “the FDA [had] requested changes to the GeneSight test offering” after Myriad Genetics had provided the FDA with clinical evidence and other information to support the test, and that Myriad Genetics had “been in ongoing discussions with the FDA regarding its request.” Riggsbee continued, stating that, “[a]lthough [they] continue to disagree the changes to the tests are required, on August 10, 2019, [they] submitted a proposal regarding the reporting of GeneSight test results to healthcare providers that we believe address the FDA’s principal concerns.”
Also on August 13, 2019, Myriad Genetics filed an Annual Report on Form 10-K with the U.S. Securities and Exchange Commission, reporting Myriad Genetics’ financial and operating results for the fiscal year ended June 30, 2019 (the “2019 10-K”). In the 2019 10-K, defendants disclosed that the FDA had questioned whether the validity of GeneSight’s purported benefits had been established. The 2019 10-K also revealed that, since at least late 2018, the FDA had increasingly questioned the claims of marketed genetics tests such as GeneSight. On this news, the price of Myriad Genetics stock fell $19.05 per share, or more than 42%, to close at $25.50 per share on August 14, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Myriad Genetics securities during the Class Period to seek appointment as lead plaintiff in the Myriad Genetics class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Myriad Genetics class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Myriad Genetics class action lawsuit. An investor’s ability to share in any potential future recovery of the Myriad Genetics class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Myriad Genetics class action lawsuit or have questions concerning your rights regarding the Myriad Genetics class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. Lead plaintiff motions for the Myriad Genetics class action lawsuit must be filed with the court no later than November 26, 2019.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.