Fulgent Genetics Fraud Class Action Investigation
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Fulgent Genetics, Inc.


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Fulgent Genetics, Inc. (“Fulgent”) (NASDAQ: FLGT) securities between March 22, 2019 through August 4, 2022, inclusive (the “Class Period”). Investors have until November 21, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
Fulgent, together with its subsidiaries, provides COVID-19, molecular diagnostic, and genetic testing services to physicians and patients in the United States and internationally.
 
On August 4, 2022, Fulgent released its second quarter 2022 financial results, disclosing, among other items, that the SEC was conducting an investigation into certain of the Company’s reports filed with the SEC from 2018 through the first quarter of 2020. The disclosure followed the Company’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, the price of Fulgent shares declined by $3.88, or approximately 6.09%, from $63.74 per share to close at $59.86 on August 5, 2022.
 
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading and/or failed 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 AntiKickback Statute and Stark Law; (ii) accordingly, Fulgent was likely to become subject to enhanced legal and regulatory scrutiny; (iii) Fulgent’s revenues, to the extent they were derived from the foregoing unlawful conduct, were unsustainable; (iv) the foregoing, once revealed, was likely to subject the Company to significant
financial and/or reputational harm; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
 

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