Safirstein Metcalf LLP, announces that a class action lawsuit was filed in the U.S. District Court for the District of New Jersey on behalf of all persons or entities who purchased or otherwise acquired Cancer Genetics, Inc. (NASDAQ:CGIX) (“Cancer Genetics” or the “Company”) securities between March 23, 2017 and April 2, 2018 (the “Class Period”).
If you purchased or acquired Cancer Genetics securities during the class period, and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than June 4, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
According to the complaint, the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. On April 2, 2018, the Company reported that, following its CEO’s departure, it conducted a comprehensive review of its strategy and organization. This led the Company to record a bad debt expense of $4.4 million and write off $1.8 million of its accounts receivable in the fourth quarter, with a significant portion related to collection issues with accounts receivables recorded after 2015. The Company also reported that, on December 31, 2017, its “cash position and history of losses required management to assess [its] ability to continue operating as a going concern[.]” Following this news, shares of Cancer Genetics fell $0.55 per share or over 33% to close at $1.10 per share on April 3, 2018.
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