The story has been updated to clarify language about Cancer Genetics' review of its operations.
NEW YORK (GenomeWeb) – At least two class action lawsuits have been filed against Cancer Genetics alleging the company made false and/or misleading statements and/or failed to disclose information pertinent to investors.
One lawsuit was filed last week by Gainey McKenna & Egleston with the US District Court District of New Jersey, following Cancer Genetics' announcement of its fourth quarter financial results on April 2. At that time the company said that after a comprehensive review of its strategy and organization subsequent to the departure of its former CEO Panna Sharma, it recorded a bad debt expense of $4.4 million and wrote off $1.8 million of its accounts receivables for its fourth quarter. A significant portion of the collection issues with accounts receivables were recorded after 2015, following Cancer Genetics' $14 million acquisition of Response Genetics.
Additionally, Cancer Genetics said that on Dec. 31, 2017, its "cash position and history of losses required management to assess [its] ability to continue operating as a going concern," the law firm said in a statement.
The lawsuit was filed on behalf of investors who acquired Cancer Genetics' stock or other securities between March 23, 2017 through April 2, 2018.
A second lawsuit was announced today by the law firm Bronstein, Gewirtz & Grossman, which also alleged that Cancer Genetics made misleading statements and failed to disclose that it "had ineffective disclosure controls and internal controls over financial reporting."
Through a spokesperson, Cancer Genetics declined to comment.
In Monday morning trade on the Nasdaq, shares of Cancer Genetics were down around 13 percent at $1.05.