Sema4 Holdings Corp.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Connecticut on behalf of those who acquired Sema4 Holdings Corp. (“Sema4”) (NASDAQ: SMFR) securities between March 14, 2022 through August 15, 2022, inclusive (the “Class Period”). Investors have until November 7, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Sema4 is a health company that uses artificial intelligence to enable personalized medicine.
On August 15, 2022, after the market closed, Sema4 announced changes to its research and development leadership team, including that Defendant Schadt was stepping down from his roles as President and Chief R&D Officer. The Company also disclosed that it was eliminating approximately 13% of its workforce as part of a series of restructuring and corporate realignments. During the related conference call, Sema4 revealed that it had “reversed $30.1 million of revenue this quarter related to prior periods,” in connection with negotiations with “one of [Sema4’s] larger commercial payors regarding the potential recoupment of payments for Sema4 carrier screening services rendered from 2018 to early 2022.” On this news, Sema4 shares declined by $0.80 per share, or approximately 33.3%, from $2.40 per share to close at $1.60 per share on August 16, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading and/or failed to disclose that: (1) that there was a significant risk that Sema4 would reverse a material amount of previously recognized revenue that it could not recoup from third party payors; (2) that the Company was experiencing declining selling prices for its reproductive health segment; (3) that, as a result of the foregoing, Sema4’s financial results would be adversely affected; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.