1. A class action was filed against NEOG for misleading investors. 2. Neogen misrepresented its integration progress with 3M Company. 3. The CEO's resignation and poor financial outlook affected stock prices. 4. The stock plummeted 79% from August 2023 to June 2025. 5. Investors may participate in the class action for potential recovery.
The class action highlights severe integration issues, raising red flags for investors. Historical price drops due to negative news further indicate investor concerns.
The ongoing class action and the implications of integration issues are critical for NEOG investors. The scale of potential financial repercussions amplifies this importance.
Ongoing legal troubles and management instability can affect NEOG's long-term valuation. Previous issues led to a significant decline in investor confidence.
Neogen is a food safety company that manufactures and markets products and services dedicated to food and animal safety.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
Robbins LLP is Investigating Allegations that Neogen Corporation (NEOG) Misled Investors Regarding its Integration with 3M Company.
According to the complaint, during the class period, defendants issued a series of false and misleading statements that led investors to believe that the Company's integration with 3M Company was progressing smoothly. In reality, defendants misrepresented the status of the integration and failed to disclose the negative impact of significant integration issues on the financial health of the Company.
Plaintiff alleges that on January 10, 2025, Neogen revealed, among other things, that GAAP net income in the second quarter was significantly negative due to a $461 million non-cash goodwill impairment charge related to the 3M acquisition. Neogen also updated its full year outlook, cutting its fiscal year 2025 revenue and EBITDA guidance. In addition, the Company revealed that, as of November 30, 2024, the Company had material weaknesses in its internal control over financial reporting. On this news, the price of the Company's common stock declined 5% to close at $12.36 per share.
Plaintiff further alleges that on April 9, 2025, Neogen announced that quarterly revenue fell 3.4% to $221 million, in part, due to integration issues. Neogen again cut its FY25 revenue and EBITDA outlook and noted that capital expenditures were expected to be $100 million because of lowered adjusted EBITDA and a pull-forward of integration-related capital expenditures into FY25. Moreover, Neogen revealed that the Company's CEO would be stepping down. On this news, the price of the Company's common stock fell 28%.
Finally, on June 4, 2025, Neogen revealed that it expected "EBITDA margin to probably be around the high-teens" which represented a considerable drop from the previous quarter's profit margin of 22%. On this news, the price of the Company's common stock fell an additional 17%, to close at $4.96 per share. From the Company's August 15, 2023 stock price high of $23.84 per share through its June 4, 2025 closing price of $4.96 per share, Neogen's stock price dropped $18.88 per share, or 79%, erasing more than $4 billion of the Company's market capitalization.
You may be eligible to participate in the class action against Neogen Corporation. Shareholders who want to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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SOURCE Robbins LLP