Neogen Corporation Faces Class Action Lawsuit Over Misleading Financial Statements

Strategic Insights -

Neogen Corporation, a leading animal health products company, is embroiled in a class action lawsuit filed by Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm. The lawsuit alleges that Neogen's officers made materially false and misleading statements about the company's integration and financial performance during the Class Period, which spanned from January 5, 2023, to June 3, 2025. The class action seeks to recover damages for investors who purchased or acquired Neogen securities during this period.

Key Takeaways:

  • The lawsuit alleges that Neogen's officers made false and misleading statements about the integration's progress and financial performance.
  • The company acknowledged "inefficiencies" resulting from the integration but downplayed their significance, falsely assuring investors that they were aware of the issues and committed to resolving them promptly.
  • Neogen disclosed on June 4, 2025, that it expected EBITDA margin to be around the high-teens, a substantial decline from the prior quarter's 22% margin.
  • Investors were shocked by the revelation, which led to a significant decline in the company's stock price.
  • The class action lawsuit has been filed, and investors who suffered a loss in Neogen have until September 16, 2025, to request that the Court appoint them as lead plaintiff.
  • Bronstein, Gewirtz & Grossman, LLC represents investors in class actions on a contingency fee basis, meaning they will only receive reimbursement for out-of-pocket expenses and attorneys' fees if they are successful.
  • The firm has recovered hundreds of millions of dollars for investors nationwide and has a strong track record of success in securities fraud class actions and shareholder derivative suits.

Statistics:

  • The Class Period spans from January 5, 2023, to June 3, 2025 (approximately 2 years and 5 months).
  • Neogen's officers allegedly made false and misleading statements about the integration's progress and financial performance.
  • The company's EBITDA margin declined from 22% in the prior quarter to around the high-teens after disclosing the integration's issues.
  • Investors who suffered a loss in Neogen have until September 16, 2025, to request that the Court appoint them as lead plaintiff.

Sources:

  • Newsfile Corp. - August 15, 2025
  • Bronstein, Gewirtz & Grossman, LLC
  • Neogen Corporation (NASDAQ: NEOG)