Kaskela Law LLC: Shareholder Class Action Filed Against Cancer Genetics, Inc. - CGIX

RADNOR, Pa., May 06, 2018 -- Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against Cancer Genetics, Inc. (NASDAQ:CGIX) (“Cancer Genetics” or the “Company”) on behalf of purchasers of the Company’s securities between March 23, 2017 and April 2, 2018, inclusive (the “Class Period”).

Cancer Genetics investors are encouraged to visit http://kaskelalaw.com/case/cancer-genetics-inc/ to receive additional information about this action and submit their information online.  Investors may also contact attorney D. Seamus Kaskela at (888) 715 – 1740, or via email at [email protected], to discuss their legal rights and options with respect to this action.

The shareholder class action complaint alleges that Cancer Genetics and certain of its senior executive officers made false and misleading statements and/or failed to disclose to investors that that Company had ineffective disclosure controls and internal controls over financial reporting during the Class Period.  The complaint further alleges that, as a result of the foregoing, investors purchased Cancer Genetics’ securities at artificially inflated prices during the Class Period and sustained significant investment losses when the truth was revealed.

On April 2, 2018, Cancer Genetics disclosed, among other things, that the Company “recorded a bad debt expense of $4.4 million and wrote off $1.8 million of its accounts receivable, with a significant portion of the bad debt expense and write off related to collection issues with respect to the accounts receivable recorded subsequent to the 2015 acquisition of Response Genetics Inc.”  Additionally, Cancer Genetics disclosed that its forthcoming fiscal 2017 Annual Report would “contain a going concern qualification paragraph in the audit opinion from its independent registered public accounting firm,” and that the Company would “also disclose that it had a Material Weakness in Internal Controls Over Financial Reporting at December 31, 2017.”

Following this news, shares of the Company’s stock declined $0.55 per share, or over 33%, to close on April 3, 2018 at $1.10 per share, on heavy trading volume.

Investors who purchased Cancer Genetics securities during the Class Period may, no later than June 4, 2018, seek to be appointed as a lead plaintiff representative of the class through Kaskela Law or other counsel, or may choose to do nothing and remain an absent class member.  In order to be appointed as a lead plaintiff a class member must meet certain legal requirements. 

Kaskela Law LLC exclusively prosecutes shareholder actions in state and federal courts throughout the country on behalf of investors.  For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.

CONTACT:

KASKELA LAW LLC
D. Seamus Kaskela, Esq.
201 King of Prussia Road
Suite 650
Radnor, PA 19087
(888) 715 – 1740
[email protected]
www.kaskelalaw.com