RADNOR, Pa., Dec. 21, 2010 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of California on behalf of purchasers of Genoptix, Inc. (Nasdaq: GXDX) ("Genoptix" or the "Company") securities between July 31, 2009 and June 15, 2010, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
The Complaint charges Genoptix and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Genoptix is a specialized laboratory service provider focused on delivering diagnostic services to community-based hematologists and oncologists. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's current business model was unsustainable; (2) that due to known trends and uncertainties, including increased competition and increased managed care pressures, the Company would be unable to grow and would have difficulty maintaining its current client base; (3) that the reconfiguration of the Company's sales force had severely impacted its ability to grow revenue; (4) that the Company lacked adequate internal controls; and (5) that, as a result of the foregoing, the defendants lacked any reasonable basis for their positive statements about Genoptix's growth and prospects.
The Complaint alleges that during the Class Period, the defendants issued materially false and misleading statements about the Company's operations and prospects. Specifically, the defendants repeatedly represented the Company's hematology and oncology testing and diagnostic business model as "unique" and superior to that of its competitors, and projected the ability and intent to "double to triple the size" of the Company's market share within three to five years. As a result of the defendants' false and misleading statements, during the Class Period the price of the Company's stock was artificially inflated, closing as high at $38.79 per share on April 30, 2010. On May 6, 2010, the Company shocked investors when it issued a press release announcing its financial results for the first quarter of 2010. Therein, the Company reported net income of $5.3 million, or $0.29 diluted earnings per share ("EPS"), and revenue of $47.4 million, falling far short of analysts' estimates which expected the Company to report diluted EPS of $0.41 and revenue of $53.3 million. Upon the release of this news, shares of the Company's stock declined $8.37 per share, or over 23 percent, to close on May 7, 2010 at $27.89 per share, on unusually heavy trading volume.
Then on June 16, 2010, the Company issued a press release providing a "first look" at its performance for the second quarter of 2010, as well as reducing its guidance for fiscal year 2010. The Company reduced its revenue guidance from between $235 million and $240 million to $210 million, and reduced its diluted EPS guidance from between $1.80 per share and $1.85 per share to $1.20 per share. Upon the release of this news, shares of the Company's stock declined an additional $5.69 per share, or almost 25 percent, to close at $17.19 per share on June 16, 2010, on unusually heavy volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.
If you are a member of the class described above, you may, not later than February 4, 2011, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Barroway Topaz Kessler Meltzer & Check, LLP
Darren J. Check, Esq.
David M. Promisloff, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at email@example.com
SOURCE Barroway Topaz Kessler Meltzer & Check, LLP