Neogen Corporation Faces Class Action Lawsuit Over Alleged Misleading Statements

Strategic Insights -

Neogen Corporation, a leading food safety company, is at the center of a class action lawsuit alleging that the company misled investors regarding its integration with 3M Company. The lawsuit claims that Neogen issued a series of false and misleading statements, leading investors to believe that the integration was progressing smoothly, when in reality, the company misrepresented the status of the integration and failed to disclose significant integration issues.

According to the complaint, Neogen revealed significant negative financial information on January 10, 2025, including a $461 million non-cash goodwill impairment charge related to the 3M acquisition. The company also updated its full year outlook, cutting its fiscal year 2025 revenue and EBITDA guidance. The subsequent announcement of quarterly revenue falling 3.4% and the CEO's resignation further eroded investor confidence, resulting in a 28% decline in stock price. By June 4, 2025, Neogen's stock price had dropped 79%, erasing over $4 billion of market capitalization.

Key Takeaways:

  • The lawsuit alleges that Neogen Corporation issued misleading statements about its integration with 3M Company, leading to a significant decline in stock price.
  • Neogen revealed a $461 million non-cash goodwill impairment charge related to the 3M acquisition on January 10, 2025, which led to a 5% decline in stock price.
  • The company also announced quarterly revenue falling 3.4% and cut its FY25 revenue and EBITDA outlook, leading to a further decline in stock price.
  • Neogen's stock price dropped 28% on April 9, 2025, and an additional 17% on June 4, 2025, erasing over $4 billion of market capitalization.
  • The lawsuit alleges that the company's CEO was stepping down due to integration issues and that capital expenditures were increased to $100 million.
  • Neogen's stock price fell from $23.84 to $4.96, a decline of 79% and $18.88 per share.

Statistics:

  • Stock price decline: 79%
  • Market capitalization lost: over $4 billion
  • January 10, 2025: Neogen announced a $461 million non-cash goodwill impairment charge related to the 3M acquisition.
  • April 9, 2025: Neogen's stock price fell 28% to close at $12.36 per share.
  • June 4, 2025: Neogen's stock price fell an additional 17% to close at $4.96 per share.
  • Share price change from August 15, 2023 to June 4, 2025: $18.88 per share.

Sources:

  • [Source 1: Robbins LLP, August 12, 2025, /PRNewswire/]
  • [Source 2: Neogen Corporation, various dates]
  • [Source 3: 3M Company, various dates]