MYGN.US
id: 833
Myriad Genetics (MYGN) $77.5M GeneSight Case Settlement
D. Utah
Court2:19-cv-00707
Case number08/09/2017
Class period Start02/06/2020
Class period End01/16/2024
Claim deadline- Myriad Genetics supposedly misled about their GeneSight test's development and the company's financial situation;
- $MYGN fell 42.76% and lost $1.56B of its market cap, damaging investors;
- Myriad Genetics agreed to pay $77.5M to investors to resolve the claims.
On August 13, 2019, Myriad announced its disappointing financial results for the Q4 and the full year 2019. On the same day, Myriad also disclosed that “the FDA had requested changes to the GeneSight test offering”, and that Myriad had “been in ongoing discussions with the FDA regarding its request.”
On this news, $MYGN fell 42.76% and lost $1.56B of its market capitalization, damaging investors.
Later, Myriad disclosed a $18M overstatement of revenue from its hereditary cancer tests. And finally, Myriad shocked investors by announcing that the CEO was suddenly leaving the company.
It is claimed that $MYGN is accused of making false statements and neglecting to reveal the following details:
- Myriad falsely represented the level of evidence supporting the effectiveness of GeneSight;
- The test's accuracy was based on studies that had significant flaws in their methodology;
- Myriad also left out important information about the FDA's investigation into the test.
Any Investor who purchased $MYGN between August 2017 and February 2020 may be eligible for a payout.
Case Status
Disbursement
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.22
Filing date
09/27/2019
Lead Plaintiff Deadline
02/21/2020
Plaintiffs
Los Angeles Fire and Police Pensions
Attorneys
Bernstein Litowitz Berger & Grossmann LLP (New York, NY), Deiss Law PC (Salt Lake City, UT), Office of the Los Angeles City Attorney (Los Angeles, CA)
Defendants
Myriad Genetics, Inc., Mark C. Capone, Bryan Dechairo, R. Bryan Riggsbee
Judge
Robert J. Shelby
Administrator
A.B. Data Ltd
Settlement agreement date
2023-08-03
Court hearing date
12/08/2023
Exclusion deadline
05/16/2022
Objection deadline
11/17/2023
Hearing deadline
11/17/2023
Attorney fee
$16,425,000
Trades matching type
LIFO
Disbursement date
10/18/2024
+$77,500,000
Cash Settlement Amount