#United States #Robbins Geller #San Diego #Class Action #Neogen Corporation

Neogen Corporation Faces Class Action Lawsuit

The law firm Robbins Geller Rudman & Dowd LLP has announced a significant opportunity for investors of Neogen Corporation (NASDAQ: NEOG) who acquired common stock between January 5, 2023, and June 3, 2025. If you suffered substantial losses during this period, you could become a lead plaintiff in a class action lawsuit against Neogen. The lawsuit is filed under the case name Operating Engineers Construction Industry and Miscellaneous Pension Fund v. Neogen Corporation, No. 25-cv-00802 (W.D. Mich.).

Background of the Case

Neogen Corporation, through its subsidiaries, specializes in developing and marketing products dedicated to food and animal safety. The firm came under scrutiny following a merger with the Food Safety Division of the 3M Company, which was announced in December 2021 and finalized in September 2022. However, the class action lawsuit alleges Neogen's top executives misled investors about the merger's benefits, communicating that integration issues were progressing better than reality reflected.

According to the lawsuit, once these problems surfaced, executives reportedly downplayed the severity of the integration challenges, claiming confidence in their resolution without bringing full transparency to investors. This discrepancy led to significant financial repercussions, as highlighted below:

1. Initial Financial Disclosures: On January 10, 2025, Neogen shocked investors by announcing a substantial $461 million goodwill impairment charge linked to the acquisition, which drastically impacted its net income. The company lowered its fiscal year 2025 revenue and EBITDA guidance, translating to heavy financial losses. Following this announcement, Neogen's stock price dropped by over 5%.
2. Subsequent Reporting: On April 9, 2025, Neogen reported net losses amounting to $11 million for the third quarter, which more than doubled the previous year's losses. This disclosure included a notable revenue decline of 3.4%, attributed to integration issues. Another hit came when it announced the expected stepping down of CEO John Adent, which contributed to a 28% plummet in stock value following this news.
3. Future Projections: More recently, on June 4, 2025, forecasts revealed a drop in EBITDA margins, falling dramatically from 22% to anticipated levels in the high teens due to "elevated inventory write-offs," leading to an additional 17% decrease in stock value.

The Lead Plaintiff Process

Investors who purchased Neogen stocks during the specified class period and incurred significant losses may be eligible to be designated as lead plaintiff in the lawsuit. According to the Private Securities Litigation Reform Act of 1995, the lead plaintiff is generally the individual with the highest financial stake in the claims and also represents the broader investor community. Being appointed as lead plaintiff enables an investor to guide the direction of the class action lawsuit and select a law firm to represent their interests.

Robbins Geller has a history of advocacy for investors in cases of securities fraud and shareholder litigation, with the firm obtaining notable recoveries in many complex cases over the years.

If you're a Neogen investor seeking justice for your financial losses, reach out to Robbins Geller for more information on how to proceed with your claim. Legal representatives are available via phone at 800-449-4900 or through their website to assist you in the process.

Conclusion

This class action lawsuit presents a vital opportunity for Neogen investors affected by substantial losses to seek justice. Understanding the intricacies of the legal process and the ongoing developments of this case can help safeguard your rights as a shareholder. Through organized efforts, this collective movement could lead to significant recoveries for those who feel misled by the company's executives.