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Class action lawsuits

Securities Class Action Lawsuit Against Neogen Corporation

Strategic Insights

— 2 min read

Neogen Corporation, a leading developer of industrial and environmental monitoring technology, is facing a securities class action lawsuit filed in the United States District Court for the Western District of Michigan. The lawsuit, Operating Eng'rs Constr. Indus. & Misc. Pension Fund v. Neogen Corp., et al., No. 25-cv-00802, alleges that the company and certain of its executives failed to disclose material information during a certain period, violating federal securities laws. The complaint outlines a series of events, including a quarterly revenue decrease and a cut in FY25 guidance, which led to a significant drop in the company's stock price.

Key Takeaways:

  • The lawsuit alleges that Neogen and its executives failed to disclose material information, resulting in a 28% drop in stock price on April 9, 2025, and a further 17% drop on June 4, 2025.
  • The complaint cites a quarterly revenue decrease of 3.4% and a cut in FY25 guidance as the primary causes of the stock price drop.
  • Neogen disclosed the departure of its CEO and lower adjusted EBITDA on April 9, 2025, which led to the stock price downturn.
  • The company also announced a significant reduction in capital expenditures and a shift in integration-related expenses from FY24 to FY25.
  • The lead plaintiff application deadline is September 16, 2025, with investors who purchased Neogen shares between January 5, 2023, and June 3, 2025, being eligible to file.
  • Kahn Swick & Foti, LLC, a premier securities litigation law firm, is representing the investors in the lawsuit.

Statistics:

  • 28% drop in Neogen's stock price on April 9, 2025, following the disclosure of quarterly revenue decrease and FY25 guidance cutoff.
  • 17% drop in Neogen's stock price on June 4, 2025, following the disclosure of expected EBITDA margin.
  • $221 million quarterly revenue decrease, representing a 3.4% drop.
  • $100 million in capital expenditures, representing a reduction in adjusted EBITDA.
  • 47 million shares traded on April 9, 2025, the date of the stock price drop.
  • 22% profit margin in the previous quarter, compared to the forecasted high-teens EBITDA margin in FY25.

Sources:

  • Operating Eng'rs Constr. Indus. & Misc. Pension Fund v. Neogen Corp., et al., No. 25-cv-00802, United States District Court for the Western District of Michigan.
  • Kahn Swick & Foti, LLC, a premier securities litigation law firm, representing investors in the lawsuit.
  • SCAS (Securities Class Action Services) rankings of top 10 plaintiff law firms.
  • Neogen Corporation's press releases and filings with the Securities and Exchange Commission.

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