• Neogen Corp. faces securities fraud investigation
• Company's Q4 fiscal 2025 financial results disappoint investors
• EBITDA margin falls to high teens from 22%
• Elevated inventory write-offs cited as cause
• Stock price drops 17.3% to $4.96 per share on June 4, 2025
• Investors advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980
Neogen Corporation (NASDAQ: NEOG) has been the subject of a securities fraud investigation and has reported disappointing Q4 fiscal 2025 financial results, which has led to a significant drop in its stock price. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) margin fell to the high teens from 22%, primarily due to elevated inventory write-offs. The stock price dropped by 17.3% to $4.96 per share on June 4, 2025.
The securities fraud investigation was announced by the Law Offices of Howard G. Smith, who encouraged investors with losses of $100,000 or more to contact them before September 16, 2025 [1]. The lawsuit alleges that Neogen failed to disclose inefficiencies in its integration with 3M and that its statements about the company's business and prospects were misleading.
In addition to the fraud investigation, Neogen's Q4 financial results fell short of investor expectations. The company reported a significant decline in EBITDA margin, which was attributed to increased inventory write-offs. This decline in profitability has raised concerns among investors about the company's financial health and future prospects.
The stock price decline has been exacerbated by several large investors reducing their stakes in Neogen. Northern Trust Corp, for instance, sold 594,867 shares, reducing its holdings by 16.6% [2]. Despite the stock price drop, some analysts have maintained a hold rating for Neogen, with an average target price of $7.50.
Investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980, to discuss their legal rights and the ongoing securities fraud lawsuit.
References:
[1] https://www.marketscreener.com/news/neogen-corporation-neog-investors-who-lost-money-have-opportunity-to-lead-securities-fraud-lawsuit-ce7d59d8dd8ffe27
[2] https://www.marketbeat.com/instant-alerts/filing-neogen-corporation-neog-shares-sold-by-northern-trust-corp-2025-09-01/
Comments
No comments yet