In re Myriad Genetics, Inc. Securities Litigation
|Court:||United States District Court for the District of Utah|
|Judge:||Hon. Robert J. Shelby|
|Class Period:||09/02/2016 - 08/13/2019|
|Case Contacts:||Adam H. Wierzbowski, Abe Alexander, Matthew Traylor|
This is a securities class action filed on behalf of all persons who purchased Myriad Genetics, Inc.’s (“Myriad” or “the Company”) publicly traded securities from September 2, 2016 to August 13, 2019, inclusive (the “Class Period”). The action is brought against Myriad and certain of the Company’s executives, and asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Myriad is a molecular diagnostics company that develops and markets predictive, personalized, and prognostic medical tests. Myriad offers, among other products, GeneSight, their marquee DNA genotyping test to aid psychotropic drug selection for depressed patients. GeneSight tests a patient for certain genes determined to react negatively to particular psychiatric treatments for depression, and then recommends particular treatments based on that patient’s genotype. During the Class Period, Defendants continually mischaracterized the evidentiary support for GeneSight in order to maximize sales of the test. The evidentiary support for the efficacy of pharmacogenomic tests is still largely unproven, yet Defendants repeatedly made untrue statements about the test’s accuracy based on methodologically flawed studies. Further, Myriad omitted key facts about the FDA’s investigation into the GeneSight test.
On August 13, 2019, Myriad filed an 8-K with the SEC reporting its disappointing fiscal fourth quarter and full year 2019 financial results. In an earning call with investors and analysts that same day, Myriad additionally revealed for the first time that “the FDA [had] requested changes to the GeneSight test offering” and that Myriad had “been in ongoing discussions with the FDA regarding its request.” On this news, Myriad’s stock price drastically fell $19.05 per share, or 42.76% of the stock’s total value, to $25.50 per share by close of trading on August 14, 2019, damaging Myriad investors.
In December 2019, the Court appointed the Los Angeles Fire and Police Pensions as Lead Plaintiffs, and BLB&G as Lead Counsel for the Class.
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