Grant & Eisenhofer Files Class Action Lawsuit Against Neogen Corporation Over Alleged Misleading Statements and Fraudulent Activities

Grant & Eisenhofer filed a class-action lawsuit against Neogen Corporation for allegedly defrauding investors by making false and misleading statements about its acquisition of the Food Safety Division of 3M Corporation. The complaint alleges that the company's CEO, John Adent, and CFO, David Naemura, failed to disclose material facts about the integration of the division. The lawsuit seeks damages on behalf of all persons who purchased Neogen stock between January 5, 2023, and June 3, 2025.

New York, July 2, 2025 — Grant & Eisenhofer P.A. has filed a class-action lawsuit against Neogen Corporation, its CEO John Adent, and COO & CFO David Naemura. The lawsuit alleges that the company and its executives defrauded investors by making false and misleading statements regarding the acquisition and integration of the Food Safety Division of 3M Corporation [1].

The complaint, filed in the United States District Court for the Western District of Michigan, accuses Neogen of violating Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The lawsuit claims that throughout the class period from January 5, 2023, to June 3, 2025, Neogen misrepresented the status of the 3M integration and failed to disclose the negative impact of integration issues on the company's financial health [1].

Investors learned the truth through a series of disclosures beginning on January 10, 2025. On that day, Neogen revealed significant negative GAAP net income in the second quarter due to a $461 million non-cash goodwill impairment charge related to the 3M acquisition and cut its FY25 revenue and EBITDA guidance [1]. The company also disclosed material weaknesses in its internal control over financial reporting as of November 30, 2024 [1].

Neogen's stock price declined by 5% to close at $12.36 per share following these disclosures. In subsequent quarters, Neogen continued to report poor financial performance and integration issues, leading to further stock price declines. On April 9, 2025, the stock price plummeted 28% to close at $5.02 per share after Neogen announced quarterly revenue fell 3.4% due to integration issues and cut its FY25 guidance [1]. On June 4, 2025, Neogen's stock price fell an additional 17% to close at $4.96 per share after the company disclosed that its EBITDA margin would likely be around the high-teens, a significant drop from the previous quarter's 22% [1].

Investors who purchased Neogen stock during the class period may be eligible to participate in the lawsuit. They are advised to contact Karin E. Fisch at Grant & Eisenhofer P.A. for more information [1].

In addition to the lawsuit, Pomerantz LLP and Glancy Prongay & Murray LLP are also investigating claims on behalf of Neogen investors concerning potential securities fraud [2][3]. Investors are encouraged to contact these firms if they wish to discuss their rights and potential claims.

References:
[1] https://www.businesswire.com/news/home/20250718741718/en/Grant-Eisenhofer-Files-Class-Action-Lawsuit-Against-Neogen-Corporation
[2] https://www.globenewswire.com/news-release/2025/07/18/3118073/1087/en/INVESTOR-ALERT-Pomerantz-Law-Firm-Investigates-Claims-On-Behalf-of-Investors-of-Neogen-Corporation-NEOG.html
[3] https://www.morningstar.com/news/globe-newswire/9494386/securities-fraud-investigation-into-neogen-corporation-neog-continues-investors-who-lost-money-urged-to-contact-glancy-prongay-murray-llp-a-leading-securities-fraud-law-firm