Myriad Genetics, Inc. (NASDAQ: MYGN)

A class action lawsuit has been filed on behalf of investors who purchased Myriad Genetics, Inc. (“Myriad”) (NASDAQ: MYGN) common stock. The lawsuit alleges that certain Myriad executive officers fraudulently misled investors, causing Myriad’s stock price to drop nearly 43% in a single day after the truth emerged. The lawsuit seeks to recover monetary damages for Myriad investors, with all litigation costs and expenses covered by Murphy Law Firm.
Investor Information

The lawsuit alleges that defendants issued materially false and misleading statements about the purported clinically-demonstrated efficacy of its product GeneSight, a DNA genotyping test to assist with drug selection for patients, and the profitability of its recently-acquired product Foresight, a prenatal carrier screening test for future parents to assess their risk of passing on a recessive genetic condition to their children. Among other things, the lawsuit alleges that defendants misrepresented and failed to disclose that: (1) GeneSight lacked sufficient evidence or information to support the tests in their current form and their purported benefits; (2) the U.S. Food and Drug Administration (“FDA”) had requested that Myriad make changes to GeneSight and questioned the validity of the test’s purported benefits; (3) the Company had been in discussions with the FDA regarding changes to GeneSight that the FDA had requested due to the FDA’s concerns about the product; and (4) Foresight was at risk of receiving lower reimbursement rates, which could cause a materially negative impact on Myriad’s revenue. After the market closed on August 13, 2019, defendants issued an earnings release, in which Myriad’s CEO Mark Capone disclosed that “revenue in the fourth quarter was two percent below expectations largely due to lower reimbursement” for Foresight. Later that day, on an earnings conference call with investors, Bryan Rigsbee (Myriad’s CFO) disclosed that following the FDA’s review of the purported clinical evidence supporting GeneSight, “the FDA requested changes to the GeneSight test offering” due to concerns the FDA has about GeneSight. On this news, Myriad’s share price plummeted more than 42.7%, or $19.05 per share, in one trading day to close at $25.50 per share on August 14, 2019, compared to a closing price of $44.55 on August 13, 2019.

To join the lawsuit, please provide your information above, or to discuss your rights regarding this class action, please contact A. Brooke Murphy, Esq. at or (405) 389-4989.