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The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Foundation Medicine, Inc. (NASDAQ: FMI) who purchased shares between February 26, 2014 and November 3, 2015. The action, which was filed in the USDC for the District of Massachusetts, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements and/or failed to disclose material information regarding: (1) the reimbursement process and likelihood of coverage for Foundation’s tumor tests by Medicare; and (2) the Company’s financial guidance. As a result of these false statements, Foundation common stock traded at artificially inflated prices during the Class Period.
On July 29, 2015, the Company disclosed that it was not making the strides obtaining coverage it had claimed to have been making during the Class Period, and that Foundation would receive no Medicare payments in 2015 for its tumor profiling tests due to a delay in receiving a local coverage determination from its regional Medicare Administrative Contractor. As a result of the delay, the Company slashed its 2015 financial guidance, which, unbeknownst to investors, was based on an assumption that Medicare approval was going to be obtained in 2015. Then, on November 3, 2015, the Company disclosed a further revision to the already reduced number of clinical tests it expected to report for 2015.
Shareholders have until September 26, 2017 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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