Kehoe Law Firm, P.C. is investigating whether certain directors and/or officers of Fulgent Genetics, Inc. (“Fulgent,” “Fulgent Genetics” or the “Company”) (NASDAQ: FLGT) breached their fiduciary duties to Fulgent and its shareholders by making, or causing Fulgent to make, false and/or misleading statements, in addition to failing to disclose material adverse facts, about Fulgent’s business, operations, prospects, and financial health.
INVESTORS OF FULGENT GENETICS SINCE AT LEAST AUGUST 4, 2022 ARE ENCOURAGED TO CLICK HERE TO CONTACT KEHOE LAW FIRM, P.C.
The investigation concerns whether the board failed to disclose material information, including whether Fulgent misled investors by failing to disclose that (i) Fulgent 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; (ii) accordingly, Fulgent was likely to become subject to enhanced legal and regulatory scrutiny; and (iii) Fulgent’s revenues, to the extent they were derived from the foregoing unlawful conduct, were unsustainable; and whether, as a result, statements about Fulgent’s business, operations, and prospects lacked a reasonable basis.
On August 4, 2022, Fulgent released its second quarter 2022 financial results, disclosing that the SEC was conducting an investigation into certain of Fulgent’s reports filed with the SEC from 2018 through the first quarter 2020.
The disclosure followed Fulgent’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.”
On this news, Fulgent’s stock price fell $11.02, or 17.29%, over the following two trading sessions, to close at $52.72 per share on August 8, 2022.