Neogen(US:NEOG) GlobeNewswire News Roomยท2025-08-04 08:00Core Viewpoint - Neogen Corporation is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives misled investors regarding the integration with 3M and the financial health of the company during the class period from January 5, 2023, to June 3, 2025 [1][3]. Company Overview - Neogen Corporation, along with its subsidiaries, specializes in the development, manufacture, and marketing of products and services focused on food and animal safety [2]. Allegations of the Lawsuit - The lawsuit claims that Neogen's executives made false or misleading statements about the progress of the integration with 3M, leading investors to believe it was more successful than it was [3]. - It is alleged that when Neogen disclosed "inefficiencies" from the integration, the executives downplayed these issues and assured investors of their commitment to resolving them [3]. Financial Performance - On January 10, 2025, Neogen reported a significant GAAP net income loss due to a $461 million non-cash goodwill impairment charge related to the 3M acquisition, alongside a reduction in fiscal year 2025 revenue and EBITDA guidance [4]. - Following this announcement, Neogen's stock price dropped over 5% [4]. - On April 9, 2025, Neogen reported a loss of $11 million for the third quarter of 2025, a significant increase from a loss of $2 million the previous year, with revenue falling 3.4% to $221 million due to integration issues [5]. - This news led to a 28% decline in Neogen's stock price [5]. - On June 4, 2025, Neogen projected an EBITDA margin drop to the high teens from 22%, attributing the decline to elevated inventory write-offs, resulting in a further stock price drop of over 17% [6]. Legal Process - Investors who purchased Neogen common stock during the class period can seek appointment as lead plaintiff in the class action lawsuit, representing the interests of all class members [7].