Neogen Class Action Lawsuit: An Authoritative Panoramic Illumination Extremely Instructive on Investor Rights and Options [2025]

Securities fraud class action lawsuits represent a significant legal mechanism for investors who have suffered financial losses due to corporate malfeasance. These lawsuits, such as the Neogen lawsuit, typically arise when a company or its executives engage in deceptive practices that mislead investors about the company’s financial health or prospect.

The goal of such litigation is to hold the perpetrators accountable and secure compensation for the affected investors. Securities fraud encompasses a range of activities, including insider trading, false financial statements, and misleading disclosures, all of which can severely impact market integrity and investor confidence.

In a class action context, a group of investors collectively brings the lawsuit against the defendant, which could be a corporation or its executives. This collective approach is particularly powerful in the securities realm because it allows individual investors, who might not have the resources to pursue litigation on their own, to band together and seek justice.

The class action mechanism ensures that the legal process is efficient and that the interests of all affected investors are represented.

The complexity of securities fraud class action lawsuits requires plaintiffs to navigate a labyrinth of legal standards and procedural hurdles. One of the most significant challenges is surviving a motion to dismiss, a legal maneuver by the defendants to have the case thrown out before it reaches trial.

Understanding the nuances of the Neogen lawsuit is crucial for any stakeholder involved, as it sets the stage for the strategic decisions that will follow. In the case of the Neogen class action lawsuit, these elements come into sharp focus, highlighting the importance of a well-crafted legal strategy.

Overview of the Neogen Class Action Lawsuit

Allegations in the Neogen Class Action Lawsuit

Neogen, together with its subsidiaries, engages in the development, manufacture, and marketing of various products and services dedicated to food and animal safety.  According to the complaint, in December 2021, it was announced that Neogen would merge with the Food Safety Division of the 3M Company, with the deal closing in September 2022.

The Neogen class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) defendants led investors to believe that Neogen’s integration with 3M was progressing much better than it actually was; and (ii) even when Neogen was forced to reveal that certain “inefficiencies” arose as a result of the integration, defendants downplayed them and assured investors that they were fully aware and committed to resolving them quickly.

The Neogen class action lawsuit further alleges that on January 10, 2025, Neogen announced its preliminary second quarter of 2025 financial results, revealing, among other things, that:

• GAAP net income in the quarter was significantly negative due to a $461 million non-cash goodwill impairment charge related to the 3M acquisition;
• Neogen cut its fiscal year 2025 revenue and EBITDA guidance; and
• Neogen concluded that, as of November 30, 2024, Neogen had material weaknesses in its internal control over financial reporting.  On this news, the price of Neogen common stock fell more than 5%, according to the complaint.

Then, on April 9, 2025, the Neogen class action lawsuit alleges that Neogen announced its third quarter of 2025 financial results, reporting a loss of $11 million, or $0.05 per share, compared with a loss of $2 million, or $0.01 per share, a year earlier.

Neogen further announced that revenue fell 3.4% to $221 million which had been negatively impacted by integration issues, Neogen was cutting its fiscal year 2025 revenue and EBITDA outlook, capital expenditures were expected to be $100 million as a result of lowered adjusted EBITA and a “pull-forward of . . . integration capex into fiscal 2025,” and that CEO, defendant John Adent, would be stepping down.

On this news, the price of Neogen common stock fell 28%, according to the complaint.

Finally, on June 4, 2025, Neogen revealed that it expected “EBITDA margin to probably be around the high-teens” which represented a considerable drop from the previous quarter’s profit margin of 22%, blaming the expected shortfall on “elevated . . . inventory write-offs,”  according to the complaint.  The Neogen class action lawsuit alleges that on this news, the price of Neogen common stock fell more than 17%.

The Role of Investors in the Class Action

nvestors who have suffered losses as a result of the alleged misconduct have the option to participate in the Neogen class action lawsuit. The Private Securities Litigation Reform Act of 1995 allows any investor who purchased PepGen securities during the class period to seek appointment as the lead plaintiff.

Becoming a Lead Plaintiff

To become a lead plaintiff, an investor must demonstrate the greatest financial interest in the outcome of the case and show that they are typical and adequate representatives of the class. The lead plaintiff plays a crucial role in directing the lawsuit and can select a law firm to represent the interests of all class members.

Benefits of Joining the Class Action

Joining the Neogen class action lawsuit can provide several advantages for investors, including:

• Collective Strength: By banding together, investors can pool their resources and increase their chances of a favorable outcome.
• Legal Representation: Class members benefit from the expertise of experienced attorneys in securities fraud cases.
• Reduced Costs: Participating in a class action can significantly lower individual legal costs compared to pursuing a lawsuit independently.

Evaluating the Pros and Cons of Opting Out

While joining the Neogen class action lawsuit offers numerous benefits, some investors may consider opting out. This decision should be made after careful consideration of the potential advantages and disadvantages.

Pros of Opting Out

1. Individual Control: Opting out allows investors to pursue their claims independently, giving them greater control over the litigation process.
2. Potential for Higher Recovery: Individual lawsuits may yield higher settlements or judgments, especially if the investor has a strong case.
3. Tailored Legal Strategy: Investors can choose their legal representation and develop a strategy that aligns with their specific circumstances.

Cons of Opting Out

1. Increased Costs: Pursuing an individual lawsuit can be significantly more expensive than participating in a class action.
2. Resource Limitations: Individual investors may lack the resources to mount a comprehensive legal challenge against a large corporation.
3. Risk of Losing: Opting out carries the risk of not achieving a favorable outcome, potentially resulting in financial losses.

The Legal Process Ahead

As the Neogen class action lawsuit progresses, several key legal steps will unfold. Understanding this process is essential for investors considering their options.

Filing Deadlines

Investors interested in participating as lead plaintiffs must file their motions with the court by September 16, 2025.. Meeting this deadline is crucial for those seeking to assert their rights in the ongoing litigation.

Discovery Phase

Once the lead plaintiff is appointed, the discovery phase will commence. During this stage, both parties will gather evidence, including documents, testimonies, and expert opinions. This process is vital for building a strong case and understanding the extent of the alleged misconduct.

Settlement Negotiations

As the Neogen class action lawsuit progresses, there may be opportunities for settlement negotiations. Settlements can provide a quicker resolution for investors, allowing them to recover losses without the uncertainty of a trial.

The Importance of Legal Representation

Navigating the complexities of a class action lawsuit requires skilled legal representation. Investors should consider engaging a law firm with a proven track record in securities fraud cases.

If you suffered substantial losses and wish to serve as lead plaintiff of the Neogen class action lawsuit, or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at tmiles@timmileslaw.com.

Choosing the Right Law Firm

When selecting a law firm, investors should look for:

• Experience: A firm with a history of successfully handling class action lawsuits and securities fraud cases.
• Reputation: Positive reviews and testimonials from previous clients can indicate a firm’s reliability and effectiveness.
• Resources: A well-resourced firm can provide the necessary support for a comprehensive legal strategy.

Understanding Investor Rights

Investors have specific rights when participating in a class action lawsuit. Familiarizing oneself with these rights is essential for making informed decisions.

Right to Information

Investors have the right to receive timely updates about the progress of the Neogen class action lawsuit, including any significant developments or changes in strategy. Transparency is crucial for maintaining trust and ensuring that investors are well-informed.

Right to Participate

All investors who qualify for the class action have the right to participate in the proceedings. This includes the ability to voice concerns, ask questions, and provide input on key decisions.

Right to Recovery

Ultimately, investors have the right to seek recovery for their losses. Whether through a settlement or a favorable judgment, the goal of the Neogen class action lawsuit is to provide compensation for those affected by the alleged misconduct.

The Future of Compass Diversified Holdings

As the Neogen class action lawsuit unfolds, the future of the  companhy remains uncertain. The outcome of the Neogen lawsuit will likely have significant implications for the company’s operations and reputation.

Potential Outcomes

1. Settlement: A settlement could provide a swift resolution, allowing investors to recover losses while enabling the company to move forward.
2. Trial: If the case proceeds to trial, the outcome will depend on the evidence presented and the jury’s decision.
3. Corporate Reforms: Regardless of the outcome, the lawsuit may prompt Compass Diversified to implement changes in corporate governance and financial reporting practices.

Investor Vigilance

Investors should remain vigilant and informed about developments in the lawsuit. Staying updated on the proceedings can help them make informed decisions about their investments and legal options.