Faruqi & Faruqi, LLP Is Investigating Genoptix, Inc. On Behalf Of Its Shareholders - GXDX
Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors and Officers of Genoptix, Inc. (“Genoptix” or the “Company”) (NASDAQ: GXDX). The investigation focuses on possible violations of the federal securities laws and breaches of fiduciary duties by Genoptix and certain of its Officers and Directors.
The investigation focuses on allegations that certain statements issued by the Company regarding Genoptix’s business, operations and prospects misrepresented the Company’s financial performance. Specifically, the investigation pertains to the Company's approach to hematology and oncology testing and diagnostics, and the projections that Genoptix would be able to double or triple the size of its market share in a short period of time, while failing to disclose that the Company’s business model was not working and, on the contrary, was causing Genoptix to lose its market share. As a result, Genoptix's stock traded at artificially inflated prices during July 31, 2009 and June 15, 2010, inclusive (the “Class Period”), reaching a high of $38.79 per share on April 30, 2010.
On May 6, 2010, Genoptix issued a press release announcing first quarter 2010 financial results far below consensus. On this news, the Company’s stock fell $8.37 per share to close at $27.89 per share on May 7, 2010, a decline of approximately 23%. Further, on June 16, 2010, Genoptix issued another press release providing a first look at its second quarter 2010 performance and updating its guidance for the full-year 2010. The Company reduced its revenue guidance to $210 million, down from previous guidance of $235 to $240 million, and its earnings per share guidance to $1.20 per share, down from previous guidance of $1.80 to $1.85 per share. On this news, the Company’s stock fell another $5.69 per share to close at $17.19 per share on June 16, 2010, a decline of approximately 25%.
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