3M Investors Sue Neogen Over Acquisition's Financial Performance

Girard Sharp Law Firm is investigating former or current 3M Company investors who received Neogen Corporation shares in connection with Neogen's acquisition of 3M's Food Safety Business in September 2022. The investigation focuses on potential securities claims related to Neogen's financial results, including a net loss of $456.3 million and material weaknesses in internal control over financial reporting. Neogen's share price has declined by 75% since the acquisition date.

The Girard Sharp Law Firm has initiated an investigation into potential securities claims on behalf of former or current investors of 3M Company (NYSE: MMM) who received shares of Neogen Corporation (NASDAQ: NEOG) in connection with Neogen's acquisition of 3M's Food Safety Business in September 2022. The investigation focuses on whether the offering materials for the merger may have included misrepresentations and omissions regarding Neogen's and 3M's financial conditions [1].

Neogen Corporation, based in Michigan, specializes in the manufacture and marketing of products and services dedicated to food and animal safety. The company's Food Safety segment includes diagnostic test products and complementary products sold to food producers and processors to detect various contaminants. The Animal Safety segment is involved in the development, manufacture, and distribution of veterinary instruments, pharmaceuticals, vaccines, and other related products [1].

The offering materials for the merger stated that the combined company expected to have improved EBITDA margins and stronger free cash flow relative to Neogen on a standalone basis, allowing Neogen to deleverage following the merger. Additionally, it was projected to generate run-rate revenue and cost synergies of $30 million within three years following the closing of the merger due to efficiencies in product innovation, sales, marketing, distribution, and production [1].

However, Neogen's financial performance since the acquisition has been challenging. On January 10, 2025, Neogen announced its preliminary 2Q25 financial results, reporting a net loss of $456.3 million due to a non-cash goodwill impairment related to the 3M Food Safety Division acquisition. Moreover, Neogen reported material weaknesses in its internal control over financial reporting as of November 30, 2024 [1].

On April 9, 2025, Neogen announced its 3Q25 financial results, reporting a net loss of $11 million and a drop in revenue of 3.4% to $221 million. The company also reported that its capital expenditures were expected to be approximately $100 million as a result of lowered Adjusted EBITDA and a pull-forward of integration capex into fiscal 2025. Additionally, the company's CEO, John Adent, would be stepping down [1].

Since September 1, 2022, the date upon which Neogen issued shares to former or current 3M investors, Neogen's share price has declined by 75% [1]. Girard Sharp's investigation is focused on whether the offering materials may have included misrepresentations and omissions regarding Neogen's and 3M's financial conditions and the merger [1].

If you are a former or current 3M investor with losses, you may contact Girard Sharp for a free consultation by filling out this form, emailing apolk@girardsharp.com, or calling (866) 981-4800 [1].

References:
[1] https://www.globenewswire.com/news-release/2025/07/23/3120085/0/en/INVESTIGATION-NOTICE-Girard-Sharp-Law-Firm-Encourages-Former-or-Current-3M-Company-NYSE-MMM-Investors-Who-Received-Neogen-Corporation-NASDAQ-NEOG-Shares-in-Connection-With-Neogen-C.html