Cision PR Newswire
Fulgent Genetics, Inc. Facing Class Action on Behalf of Investors Following Department of Justice Investigation into Illegal Activities
News provided byMcCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC
Oct 20, 2022, 1:33 PM ET
National Securities Litigation Firm Investigating Investor Claims with Losses Over $100,000
NEWARK, N.J., Oct. 20, 2022 /PRNewswire/ -- McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC (MLG) – a national firm specializing in Securities Litigation, Unfair & Deceptive Acts & Practices litigation, and Class Actions – is investigating claims against Fulgent Genetics, Inc. over their alleged dishonesty surrounding a Department of Justice (DOJ) investigation into the company's alleged illegal practices and the SEC's investigation into Fulgent's reports.
The lawsuit, Pugley v. Fulgent Genetics, Inc., et al, has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Fulgent securities between March 22, 2019, and August 4, 2022.
Fulgent Genetics provides medical laboratory testing for patients at their doctors' request. In addition to offering private practice testing, Fulgent also performs testing mandated by the federal government, including COVID-19 molecular diagnostic testing and genetic tests. As a supplier of federal health services, Fulgent Genetics is beholden to the Anti-Kickback Statute which prevents any company acting in service to the government from receiving remunerations (or kickbacks) for referred testing. The lawsuit alleges Fulgent made false and/or misleading statements and failed to disclose that it was conducting medically unnecessary laboratory testing, engaging in improper billing practices related to laboratory testing, and providing or receiving kickbacks in violation of the Federal Anti-Kickback Statute and Stark Law. Additionally, the lawsuit claims these alleged illegal practices would have caused immense damage to the company's finances and reputation if they were ever revealed, leading it to conceal the truth.
On August 4, 2022, Fulgent revealed it was the subject of an investigation by the DOJ, citing allegations of unnecessary testing, improper billing, and receiving or providing kickbacks. It also revealed that the SEC is conducting an investigation into potentially false or misleading reports for 2018 through the first quarter of 2020.
On this news, investors suffered significant losses, with Fulgent's share price falling $11.02 per share, or 17.29%, over the following two trading sessions, to close at $52.72 per share on August 8, 2022.
"Investing your own hard-earned money into a company you believe in is a major risk," remarked MLG Attorney Elaine S. Kusel, "These investors did their due diligence before investing in Fulgent and that trust was not repaid in kind. They are not at fault for Fulgent's unlawful actions and the fallout."
About MLG's Securities Litigation Practice: The Securities Litigation attorneys of MLG provide representation for investors who have been wronged through fraud, scams, and schemes. Our team has many years of experience bringing claims on behalf of investors and pursues all avenues of compensation to maximize our clients' recovery as they navigate this tumultuous time. With hard-hitting tactics and dedicated legal professionals protecting our clients' interests, MLG's Securities Litigation Practice Group hopes to hold companies accountable for their unfair or illegal financial practices.
About McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC: MLG has a deep history of success for its clients, including a $203 million verdict against Wells Fargo Bank, recovery of over $1 billion for its clients, and over 100 contingency cases with recovery of $1 million or more. MLG maintains California offices in Ontario, San Bernardino, Palm Desert, and Irvine and supports its national practice with offices in Illinois and New Jersey with more offices coming soon. For over 30 years, MLG has successfully represented clients involved in product liability, UDAP, class actions, financial services, and personal injury lawsuits. Visit mccunewright.com for more information.
View original content to download multimedia:https://www.prnewswire.com/news-releases/fulgent-genetics-inc-facing-class-action-on-behalf-of-investors-following-department-of-justice-investigation-into-illegal-activities-301655293.html
SOURCE McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC