INVESTIGATION ALERT: Scott+Scott Attorneys at Law LLP Investigates Fulgent Genetics, Inc.'s Directors and Officers for Breach of Fiduciary Duties - FLGT
Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international securities and consumer rights litigation firm, is investigating certain directors and officers of Fulgent Genetics, Inc. ("Fulgent") (NASDAQ: FLGT) for breaching their fiduciary duties to Fulgent and its shareholders. If you are a Fulgent shareholder, you may contact attorney Joe Pettigrew for additional information toll-free at 844-818-6982 or [email protected].
Scott+Scott is investigating whether members of Fulgent's board of directors made, or caused Fulgent to make, false and/or misleading statements, as well as failed to disclose materially adverse facts, about Fulgent's business, operations, prospects, and financial health. Specifically, Scott+Scott is investigating whether the board failed to disclose material information, including whether Fulgent misled investorsby failing to disclose that: (i) Fulgent had been conducting medically unnecessary laboratory testing, engaging in improper billing practices in relation to laboratory testing, and providing or receiving remuneration in violation of the Anti-Kickback Statute and Stark Law; (ii) accordingly, Fulgent was likely to become subject to enhanced legal and regulatory scrutiny; and (iii) Fulgent's revenues, to the extent they were derived from the foregoing unlawful conduct, were unsustainable; and whether, as a result, statements about Fulgent's business, operations, and prospects lacked a reasonable basis.
On August 4, 2022, Fulgent released its second quarter 2022 financial results, disclosing that the SEC was conducting an investigation into certain of Fulgent's reports filed with the SEC from 2018 through the first quarter 2020. The disclosure followed Fulgent's receipt of a civil investigative demand issued by the U.S. Department of Justice "related to its investigation of allegations of medically unnecessary laboratory testing, improper billing for laboratory testing, and remuneration received or provided in violation of the Anti-Kickback Statute and the Stark Law." On this news, Fulgent's stock price fell $11.02, or 17.29%, over the following two trading sessions, to close at $52.72 per share on August 8, 2022.
What You Can Do
If you are a Fulgent shareholder, you may have legal claims against Fulgent's directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at 844-818-6982 or [email protected].
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.
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