NEW YORK, April 06, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Cancer Genetics, Inc. (“Cancer Genetics” or the “Company”) (Nasdaq:CGIX) in the United States District Court for the District of New Jersey on behalf of a class consisting of investors who purchased or otherwise acquired Cancer Genetics securities on the open market from March 23, 2017 through April 2, 2018, inclusive (the “Class Period”), seeking to recover compensable damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
The Complaint alleges 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[.]” When the truth was revealed to the investing public, shares of the Company fell $0.55 per share or over 33% to close at $1.10 per share on April 3, 2018, causing shareholders harm.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the June 4, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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