Robbins LLP Announces Class Action Lawsuit Against Neogen Corporation Over Alleged Securities Fraud
Overview of the Class Action Lawsuit
In a recent development, Robbins LLP has initiated a class action lawsuit on behalf of investors who acquired Neogen Corporation (NASDAQ: NEOG) securities between January 6, 2023, and June 3, 2025. Neogen, a company specializing in food and animal safety, faces allegations concerning misleading statements made regarding its integration with 3M Company. This lawsuit reflects the concerns of shareholders regarding potential financial malpractices and not adhering to corporate governance standards.
Allegations Against Neogen Corporation
The crux of the allegations rests on the claim that Neogen's executives made a series of inaccurate and misleading statements about the progress of their integration with 3M Company. According to the filed complaint, these misrepresentations led investors to believe that the integration was proceeding smoothly, despite evidence to the contrary.
One significant point of contention arose on January 10, 2025, when Neogen disclosed severe financial repercussions as a result of integration issues. The company reported a substantial GAAP net income loss due to a $461 million non-cash goodwill impairment charge related to the 3M acquisition. Further compounding the issue, Neogen adjusted its fiscal year 2025 revenue and EBITDA guidance downward.
Stock Price Decline and Investor Loss
As news of the poor financial performance surfaced, it prompted a swift decline in Neogen's stock price, dropping 5% to close at $12.36 per share on January 10, 2025. The situation deteriorated further on April 9, when Neogen reported a 3.4% drop in quarterly revenue to $221 million, attributing some of this decline to integration problems. In response, the company further revised its revenue and EBITDA forecasts, resulting in a staggering 28% drop in stock price following the announcement, demonstrating how sensitive the market is to Neogen's performance and integrity.
Additionally, on June 4, 2025, Neogen predicted a significant drop in its EBITDA margin compared to the previous quarter. As a result, its stock took another hit, eventually closing at $4.96 per share—an 79% decline from its peak price of $23.84 per share in August 2023. This decline erased more than $4 billion in market capitalization, profoundly impacting investors' portfolios.
Legal Implications and Next Steps for Investors
Currently, investors who lost money due to Neogen's alleged misrepresentation may be eligible to participate in the class action lawsuit. Those interested in potentially serving as lead plaintiffs are encouraged to contact Robbins LLP, as the firm is well-versed in shareholder rights litigation and aims to support affected investors in reclaiming their losses.
Robbins LLP operates on a contingency fee basis, which means that shareholders will not incur any legal fees unless they recover their investments. This ensures that those affected by the alleged misconduct can seek justice without a financial burden.
About Robbins LLP
Robbins LLP has established itself as a leading firm in shareholder rights litigation. With a focus on aiding shareholders in recovering losses and enforcing corporate accountability, the firm has been committed to improving corporate governance since its inception in 2002. By reporting cases of corporate wrongdoing and advocating for shareholders, Robbins LLP has made significant strides in the legal landscape of corporate accountability.
If you are a shareholder seeking updates on the class action or wish to stay informed about your rights, it is advisable to sign up for Robbins LLP's Stock Watch service, which provides notifications on class action settlements and corporate executive misconduct notices. Attorney advertising notices highlight that prior results do not guarantee similar outcomes in this case.
Understanding the dynamics of corporate integrity and governance is vital for investors, especially in light of the challenges posed by large corporate mergers and acquisitions. By participating in this class action, shareholders can take a stand against negligent corporate practices and advocate for their rights effectively.