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 about its integration with 3M Company. The lawsuit claims that Neogen issued a series of false and misleading statements during the class period, leading investors to believe that the integration was progressing smoothly. However, the company allegedly misrepresented the status of the integration and failed to disclose significant integration issues that negatively impacted the company's financial health.

According to the complaint, Neogen revealed a $461 million non-cash goodwill impairment charge related to the 3M acquisition on January 10, 2025, causing the company's stock price to decline 5%. The company also cut its fiscal year 2025 revenue and EBITDA guidance, and revealed material weaknesses in its internal control over financial reporting as of November 30, 2024. The lawsuit alleges that these developments led to a significant decline in the company's stock price, with the stock closing at $4.96 per share on June 4, 2025, down from its August 15, 2023 stock price high of $23.84 per share.

Key Takeaways:

  • Neogen Corporation is facing a class action lawsuit alleging that the company misled investors about its integration with 3M Company.
  • The lawsuit claims that Neogen issued a series of false and misleading statements during the class period, leading investors to believe that the integration was progressing smoothly.
  • The company allegedly misrepresented the status of the integration and failed to disclose significant integration issues that negatively impacted the company's financial health.
  • Neogen revealed a $461 million non-cash goodwill impairment charge related to the 3M acquisition on January 10, 2025, causing the company's stock price to decline 5%.
  • The company also cut its fiscal year 2025 revenue and EBITDA guidance, and revealed material weaknesses in its internal control over financial reporting as of November 30, 2024.
  • The lawsuit alleges that these developments led to a significant decline in the company's stock price, with the stock closing at $4.96 per share on June 4, 2025, down from its August 15, 2023 stock price high of $23.84 per share.
  • Shareholders who purchased or acquired Neogen Corporation securities between January 6, 2023 and June 3, 2025 may be eligible to participate in the class action lawsuit.

Statistics:

  • $461 million: The non-cash goodwill impairment charge related to the 3M acquisition revealed on January 10, 2025.
  • 5%: The decline in Neogen's stock price on January 10, 2025, following the announcement of the goodwill impairment charge.
  • 3.4%: The decline in quarterly revenue on April 9, 2025, due to integration issues.
  • 28%: The decline in Neogen's stock price on April 9, 2025, following the announcement of the revenue decline.
  • 17%: The additional decline in Neogen's stock price on June 4, 2025, following the announcement of the expected EBITDA margin.
  • $4.96: The closing price of Neogen's stock on June 4, 2025.
  • $23.84: The August 15, 2023 stock price high of Neogen's stock.
  • $18.88: The decline in Neogen's stock price from its high on August 15, 2023 to its closing price on June 4, 2025.
  • 79%: The total decline in Neogen's stock price from its high on August 15, 2023 to its closing price on June 4, 2025.
  • $4 billion: The amount of market capitalization erased from Neogen's stock price from its high on August 15, 2023 to its closing price on June 4, 2025.

Sources:

  • Robbins LLP press release, July 30, 2025.