Fulgent Genetics, Inc. Faces Class Action Over Accepting Kickbacks for Unnecessary Medical Testing and Falsifying Reports on the State of the Company

Fulgent provides COVID-19 molecular diagnostic and genetic testing services to physicians and patients in the United States and internationally. As a result, Fulgent must comply with federal laws such as the Anti-Kickback Statue which prohibits the knowing of willful payment of “remuneration” to reward patient referrals or the generation of business involving any item or service payable by the Federal Health care programs. In other words, companies like Fulgent Genetics may not accept or give payments for passing along referrals or accepting referrals for unnecessary medical procedures.

Fulgent Genetics Class Action Alleges Financial Kickbacks and Intentional Falsehoods

The class action complaint alleges that from March 22, 2019, through August 4, 2022, Fulgent Genetics made false and misleading statements regarding the company’s business, operations, and compliance policies. The class action alleges Fulgent Genetics conducted medically unnecessary lab testing and provided or received kickbacks for these tests. In fact, the company was allegedly failing to generate enough revenue to sustain itself through legal avenues.

Because of the apparent harm to the company’s finances and reputation should these kickbacks ever be discovered, the class action against Fulgent Genetics also alleges the company misled or lied about their practices and situation to protect themselves.

If you invested in Fulgent Genetics, Inc. from March 22, 2019, through August 4, 2022, and suffered significant damages due to their allegedly illegal practices, contact our Securities Litigation team today by completing the form or calling (909) 345-8110 to set up a free consultation.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is also adequate and typical of class members. The Lead Plaintiff oversees the litigation on behalf of the putative class. Any member of the putative class may request appointment as Lead Plaintiff from the Court, and for approval of their counsel of choice as Lead Counsel. Alternatively, any member of the class may choose to do nothing and remain an absent class member. Your decision to serve as a lead plaintiff or not does affect your ability to share in any recovery.

Investors have until November 21, 2022 to seek the role of Lead Plaintiff in the federal securities class action filed against Fulgent.

Misleading Statements Result in Significant Damages for Investors

On August 4, 2022, Fulgent released its second quarter 2022 financial results, disclosing that the SEC was investigating some of Fulgent Genetics’ reports filed with the SEC from 2018 through the first quarter of 2020. Fulgent also revealed that the U.S. Department of Justice opened an investigation into the company’s alleged unnecessary medical testing and participation in kickback schemes.

As a result, Fulgent’s stock price fell $11.02 per share, or 17.29% over the following two trading sessions, to close at $52.72 per share on August 8, 2022. This stock price drop resulted in hundreds of investors suffering significant losses and damages caused by Fulgent.

If you have experienced significant losses due to Fulgent’s alleged violations, contact us today by filling out the form or calling (909) 345-8110 to arrange a free consultation.

Handling This Investigation

Portrait of Elaine S. Kusel, Partner of McCune Law Group
Elaine S. Kusel

Elaine S. Kusel, who joined McCune Law Group, Vercoski, Kusel, Weck, Brandt, APC, (MLG), in 2008 and leads the firm’s New Jersey office. As a nationally renowned class action attorney, she performs a significant role in the firm’s Consumer Fraud Class Action and Securities Litigation divisions.

After graduating from law school, her practice had included fraud litigation, mass torts, and international human rights law. Ms. Kusel has been integral to the successful recovery of multi-million-dollar settlements and verdicts for wronged consumers and investors.

Portrait of Sherief Morsy, Associate of McCune Law Group
Sherief Morsy

Sherief Morsy joined the McCune Law Group, Vercoski, Kusel, Weck, Brandt, APC, (MLG), New Jersey office in 2020. His practice primarily focuses on consumer fraud class actions, Securities Litigation, and other complex litigation matters.

Prior to joining the firm, Mr. Morsy was a senior associate at a New York City law firm, whose practice focused on complex civil and class action litigation, including securities litigation, antitrust litigation, and consumer class actions. As he previously assisted investors in recovering their losses resulting from corporate securities fraud, he now focuses that experience at McCune Law Group in assisting people who have been victimized by deceptive business practices or other corporate wrongdoing.

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