NeoGenomics Settles OIG Probe for $9.8M, Below $11.2M Reserve
NEO has more than doubled off its 52-week low of $4.72.
Summary
NeoGenomics finalized a civil settlement with the DOJ and OIG, paying $9.8 million plus interest to resolve a self-disclosed investigation into consulting services under its Laboratory Collaboration Initiative, with the settlement resolving allegations of False Claims Act violations. The company had previously accrued $11.2 million for this matter, so the settlement comes in below the reserve. This removes a legacy legal overhang that has been pending since the voluntary disclosure in November 2021. The resolution allows management to focus on advancing its oncology diagnostics business without this distraction. No admission of liability was made.
At the time of this announcement, NEO was trading at $14.24 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $4.72 to $15.57. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: BusinessWire.