INVESTOR ALERT: Kirby McInerney LLP Announces That a Class Action Lawsuit Has Been Filed Against Myriad Genetics, Inc. & Enco...
October 04 2019 - 1:41PM
Business Wire
The law firm of Kirby McInerney LLP is announcing that a class
action lawsuit has been filed in the U.S. District Court of Utah on
behalf of those who acquired Myriad Genetics, Inc. (“Myriad” or the
“Company”) (NASDAQ: MYGN) securities during the period from
September 2, 2016 through August 13, 2019. Investors have until
November 26, 2019 to apply to the Court to be appointed as lead
plaintiff in the lawsuit.
This lawsuit alleges that Myriad and certain of its officers
and/or directors have violated federal securities laws and/or
engaged in other unlawful business practices pertaining to one of
Myriad’s most important products, GeneSight. The GeneSight
Psychotropic test is a $2,000 genetic test that helps guide
treatment of individuals with major depressive disorder or anxiety
disorders. The test helps pinpoint drugs patients are more likely
to respond to. On August 1, 2019, the Company announced that
insurer United Healthcare would begin covering the GeneSight
Psychotropic test on October 1, 2019. This tends to signal
commercial success of a medical product. This is just one example
of Myriad’s continual positive representations regarding the
success of the GeneSight test. On this same day, four officers,
Mark Christopher Capone, CEO, Gary A. King, VP, Richard Bryan
Riggsbee, CFO, and Bernard Tobin, an officer, sold significant
amounts of stock. In total, insiders sold 233,712 shares on August
1, 2019, making between $9,900,380 and $10,305,380.
However, in a 10-K filed on August 13, 2019, Myriad reported
that the FDA had requested changes to its GeneSight test.
Additionally, the Company reported lower than expected fourth
quarter earnings, with a loss of $4.2 million, or 6 cents per
share. This fall was attributed to reduced reimbursement for
multiple tests, including GeneSight, Vecta, and hereditary cancer
tests. The following day, multiple analysts downgraded their
ratings of Myriad Genetics, leading to a further price drop. On
this news, prices fell from a close of $44.55 on August 13 to close
at $25.50 on August 14, 2019 (a decline of $19.05). If the insiders
had sold on August 14, just two weeks after their actual sales,
they would have made only 60% of what they made on August 1.
If you are a shareholder of Myriad, have information about these
matters, or would like to learn more about these claims, please
contact Mark A. Strauss of Kirby McInerney LLP at 212-371-6600, by
email at investigations@kmllp.com, or by filling out this contact
form, to discuss your rights or interests with respect to these
matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm
concentrating in securities, antitrust, and whistleblower
litigation. The firm’s efforts on behalf of shareholders in
securities litigation have resulted in recoveries totaling billions
of dollars. Additional information about the firm can be found at
Kirby McInerney LLP’s website: www.kmllp.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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version on businesswire.com: https://www.businesswire.com/news/home/20191004005442/en/
Kirby McInerney LLP Mark A. Strauss, Esq., (212) 371-6600
investigations@kmllp.com www.kmllp.com
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