Sign in Subscribe
Class action lawsuits

Neogen Corporation Faces Class Action Lawsuit Over Alleged Misleading Statements

Strategic Insights

— 2 min read

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's management misled investors about the status of the integration, which ultimately led to significant financial losses for the company. The lawsuit seeks to represent all investors who purchased Neogen securities between January 6, 2023, and June 3, 2025, and alleges that the company's false and misleading statements caused significant damage to its stock price.

Key Takeaways:

  • The class action lawsuit alleges that Neogen's management misled investors about the status of the integration with 3M Company, resulting in significant financial losses for the company.
  • The lawsuit claims that Neogen's management misrepresented the integration's progress and failed to disclose the negative impact of integration issues on the company's financial health.
  • On January 10, 2025, Neogen revealed a non-cash goodwill impairment charge of $461 million related to the 3M acquisition, leading to a decline in the company's stock price by 5%.
  • The lawsuit further alleges that on April 9, 2025, Neogen announced a 3.4% decline in quarterly revenue due to integration issues, which caused a 28% decline in the company's stock price.
  • The company's stock price dropped $18.88 per share, or 79%, from its August 15, 2023, stock price high of $23.84 per share through its June 4, 2025, closing price of $4.96 per share.
  • The lawsuit seeks to represent all investors who purchased Neogen securities between January 6, 2023, and June 3, 2025.
  • Shareholders may be eligible to participate in the class action lawsuit and can contact Robbins LLP for more information.
  • The lawsuit highlights the importance of corporate governance and the need for companies to provide accurate and transparent information to investors.

Statistics:

  • The company's stock price dropped $18.88 per share, or 79%, from its 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 declined by 5% on January 10, 2025, after the company revealed the non-cash goodwill impairment charge related to the 3M acquisition.
  • The company's stock price fell by 28% on April 9, 2025, after Neogen announced a 3.4% decline in quarterly revenue due to integration issues.
  • The company's market capitalization was reduced by more than $4 billion due to the stock price decline.

Sources:

  • Robbins LLP
  • Neogen Corporation (NASDAQ: NEOG)
  • The complaint filed on behalf of investors who purchased or otherwise acquired Neogen Corporation securities between January 6, 2023, and June 3, 2025.

Read more