Neogen Class Action Lawsuit: Frustrated Investors File Massive, Eye-opening Class Action Lawsuit [2025]

Introduction to the Neogen Class Action Lawsuit

The Neogen lawsuit aims to recover financial losses for investors who lost money due to alleged securities fraud between January 5, 2023, and June 3, 2025. The Neogen class action lawsuit states that defendants made materially false and misleading statements during this period.

The company’s troubles grew worse on June 4, 2025, when Neogen announced its EBITDA margin would likely drop to “high-teens” compared to the previous quarter’s 22%. Investors who lost money during this timeframe should know they have until September 16, 2025, to request appointment as lead plaintiff. Let’s get into how the failed 3M integration sparked this legal battle, look at the series of disclosures that led to the stock price collapse, and uncover the specific allegations in this eye-opening securities fraud case.

Please see the various investor resources below for an additional wealth of information.

Lead Plaintiff Deadlines

Investor Resources

Frequently Asked Questions

Shareholder Rights

Timeline of Events

Settlement Process

Report a Fraud

Neogen investors file class action over 3M integration fallout

Investors have launched a major class action lawsuit against Neogen Corporation over the company’s $5.30 billion merger with 3M’s Food Safety Division. Operating Engineers Construction Industry and Miscellaneous Pension Fund filed the legal action to recover losses for shareholders who bought Neogen stock between January 5, 2023, and June 3, 2025.

The Neogen class action lawsuit claims violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The lawsuit’s central argument states that Neogen’s executives made false statements about the merger’s progress. They created an overly positive picture while hiding serious operational problems.

Neogen’s leadership called the integration “off to a great start” during this period. They also claimed to deliver “solid core growth” and said profitability was “well ahead of where the company was prior to the acquisition”. When problems started surfacing, executives tried to minimize concerns by telling investors they “had their arms around the key issues”.

The investors now believe Neogen misled the market to maintain its valuation while the 3M deal fell apart internally. Shareholders who experienced significant losses can contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles. He’s available at no cost by phone at 855/846-6529 or by email at [email protected] to discuss serving as lead plaintiff or answer questions about shareholder rights.

Company disclosures trigger stock drops and investor losses

Neogen’s financial situation took a dramatic turn in 2025 with three devastating disclosures that sent its stock price into a downward spiral.

The company started the year with troubling news on January 10. Its quarterly GAAP net income fell deep into negative territory due to a massive $461 million non-cash goodwill impairment charge from the 3M acquisition. The company also revealed serious weaknesses in its internal financial reporting control as of November 30, 2024. Neogen’s stock dropped 5.4% that day and closed at $12.36 per share.

Things got much worse on April 9, 2025. Neogen announced that quarterly revenue had fallen 3.4% to $221 million because of integration challenges. The news came alongside CEO John Adent’s departure announcement after his eight-year tenure. Capital expenditures were expected to hit $100 million due to reduced adjusted EBITDA and integration costs. These announcements caused Neogen’s stock to plummet 28.7%, closing at $5.02 per share.

The final blow came on June 4, 2025. Neogen projected its EBITDA margins would fall to “high-teens” from the previous quarter’s 22%. The company blamed the decline on “elevated inventory write-offs”. This news pushed Neogen’s shares down another 17.3% to $4.96.

Lawsuit alleges false statements and internal control failures

Neogen faces a class action lawsuit that claims violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The lawsuit centers on claims that CEO John Adent and CFO David Naemura misled investors about the 3M Food Safety Division integration.

The Neogen class action lawsuit reveals that Neogen’s executives publicly claimed the integration was “off to a great start” with “huge strides” in progress. Behind the scenes, they hid serious problems. According to the Neogen lawsuit, the integration struggled with inefficiencies from day one. The company’s overlapping systems and supply chain failures created mounting operational problems.

Neogen dealt another blow to investor confidence when it admitted material weaknesses in its internal control over financial reporting as of November 30, 2024. This admission came with the $461 million goodwill impairment charge.

The executives “systematically misled investors” by downplaying integration problems. They knew these issues would require goodwill impairment and hurt capital expenditures, revenues, and EBITDA margins.

The plaintiffs believe Neogen painted a false picture of smooth integration and growth. The company kept hiding internal challenges until they became impossible to conceal. These challenges included $100 million in unplanned capital expenditures and inventory write-offs.

Conclusion

The Neogen class action lawsuit is a major case for investors who bought company stock between January 2023 and June 2025. Neogen’s financial troubles came directly from its rocky $5.30 billion merger with 3M’s Food Safety Division. The company’s string of bad news – a $461 million goodwill impairment charge, 3.4% revenue decline, and falling EBITDA margins – crushed shareholder value. The stock crashed from double digits to under $5 per share. The company’s executives allegedly kept investors in the dark about serious operational problems while painting a rosy picture of the integration process.

Shareholders can still take action before the September 16, 2025 deadline. Anyone who lost money and wants to be the lead plaintiff in the Neogen class action lawsuit should reach out to attorney Timothy L. Miles at the Law Offices of Timothy L. Miles. He offers free consultations at 855/846-6529 or by email at [email protected]. Many investors feel deceived by Neogen’s public claims that the integration was “off to a great start” when internal operations were reportedly in chaos. This case shows why investors need to look carefully at companies making big acquisitions.

This Neogen class action lawsuit shows how important honest corporate disclosures and clear shareholder communication really are. The legal system now gives investors who lost money on Neogen’s plummeting stock a chance to recover some losses. The investment community and corporate governance experts will watch this case closely as it moves through the courts in coming months.

Key Takeaways

Investors who purchased Neogen stock between January 2023 and June 2025 face significant losses due to alleged securities fraud related to the company’s troubled $5.30 billion 3M acquisition.

• Neogen’s stock crashed from double digits to $4.96 following three devastating disclosures including a $461M goodwill impairment charge and CEO resignation.

• The Neogen class action lawsuit alleges executives systematically misled investors by claiming the 3M integration was “off to a great start” while concealing operational failures.

• Affected shareholders have until September 16, 2025 to join the class action seeking recovery for losses during the specified period.

• Material weaknesses in financial reporting and $100M in unplanned capital expenditures reveal the true scope of integration problems.

• The case highlights critical importance of corporate transparency, as positive public statements allegedly contradicted internal chaos and mounting challenges.

The Neogen lawsuit serves as a stark reminder that major acquisitions carry substantial risks, and investors should scrutinize corporate communications for potential discrepancies between public optimism and operational reality.

Frequently Asked Questions about the Neogen Lawsuit

Q1. What is the Neogen lawsuit about? The lawsuit alleges that Neogen Corporation made false and misleading statements about its integration with 3M’s Food Safety Division, leading to significant investor losses. It covers stock purchases between January 2023 and June 2025.

Q2. What were the major events that triggered the lawsuit? Three key events: a $461 million goodwill impairment charge in January 2025, a 3.4% revenue decline and CEO resignation in April 2025, and a projected drop in EBITDA margins announced in June 2025. These disclosures caused Neogen’s stock price to plummet.

Q3. What are the main allegations against Neogen? The lawsuit claims that Neogen executives downplayed integration issues, made overly optimistic statements about the merger’s progress, and failed to disclose material weaknesses in financial reporting and operational challenges.

Q4. How much did Neogen’s stock price fall during this period? Neogen’s stock price dropped dramatically, falling from double digits to under $5 per share. The most significant drop was a 28.7% decline to $5.02 per share on April 9, 2025.

Q5. What should affected Neogen investors do? Investors who purchased Neogen stock between January 5, 2023, and June 3, 2025, and suffered losses have until September 16, 2025, to request appointment as lead plaintiff in the case. They can contact the Law Offices of Timothy L. Miles for more information or assistance.