Securities Class Action Lawsuit Against Neogen Corporation

Strategic Insights -

Neogen Corporation, a leading developer of DNA-based livestock genetic management tools, is at the center of a securities class action lawsuit. The lawsuit, pending in the United States District Court for the Western District of Michigan, alleges that the company's executives failed to disclose material information during a specific period, violating federal securities laws. The case involves investors who purchased Neogen's shares between January 5, 2023, and June 3, 2025, inclusive, and are now able to seek compensation for their economic losses.

Key Takeaways:

  • The lawsuit alleges that Neogen and its executives failed to disclose material information during the class period, violating federal securities laws.
  • The company disclosed a quarterly revenue decrease of 3.4% to $221 million on April 9, 2025, due to integration issues and lowered adjusted EBITDA.
  • Neogen cut its FY25 guidance and noted that capital expenditures were expected to be $100 million as a result of integration issues.
  • The price of Neogen's shares plummeted 28% to close at $5.02 per share on April 9, 2025, following the announcement.
  • On June 4, 2025, Neogen disclosed that it expected "EBITDA margin to probably be around the high-teens," a considerable drop from the previous quarter's profit margin of 22%.
  • The price of Neogen's shares fell an additional 17%, to close at $4.96 per share on June 4, 2025, following the disclosure.
  • Investors who purchased Neogen's shares during the class period may be able to seek compensation for their economic losses.
  • KSF, a boutique securities litigation law firm, is representing investors in the lawsuit, led by former Attorney General of Louisiana, Charles C. Foti, Jr.
  • KSF has offices across the United States and has been recognized as one of the top 10 plaintiff law firms nationally based on total settlement value.

Statistics:

  • 28% decline in Neogen's share price on April 9, 2025, to close at $5.02 per share.
  • 17% decline in Neogen's share price on June 4, 2025, to close at $4.96 per share.
  • $221 million quarterly revenue decrease disclosed on April 9, 2025.
  • $100 million capital expenditure disclosed as a result of integration issues and lowered adjusted EBITDA.

Sources:

  • GlobeNewswire, "Shareholder Class Action Lawsuit against Neogen Corporation announced 2025-09-09"
  • Neogen Corporation's investor relations webpage, accessed 2025-09-09
  • Kahn Swick & Foti, LLC's website, accessed 2025-09-09
  • SCAS, "Top 10 Plaintiff Law Firms" list, 2025
  • ISS Securities Class Action Services, "Top 10 Plaintiff Law Firms" list, 2025