NEW YORK, Aug. 02, 2017 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces the filing of a class action lawsuit in the United States District Court for the District of Massachusetts on behalf of purchasers of the securities of Foundation Medicine, Inc. (“Foundation” or the “Company”) (NASDAQ:FMI) from February 26, 2014 through November 3, 2015, inclusive (the “Class Period”).
Investors who have incurred losses in the securities of Foundation Medicine, Inc. are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have purchased securities of Foundation Medicine, Inc., you may, no later than September 26, 2017, request that the Court appoint you lead plaintiff of the proposed class.
According to the filed lawsuit, the defendants made false and/or misleading statements regarding:
- the reimbursement process and likelihood of coverage for Foundation Medicine’s tumor tests by Medicare; and
- Foundation Medicine’s financial guidance.
As a result of these false statements, Foundation Medicine common stock traded at artificially inflated prices throughout 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, in reality, 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.
On this news, the price of Foundation common stock fell $7 per share, or approximately 24%.
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.
Following this disclosure, the price of Foundation common stock fell again, closing down $6.62 per share to close at $17.31 per share on November 4, 2015.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
## Follow the firm and learn about newly filed cases on Twitter and Facebook. ##
Attorney Advertising. Prior results do not guarantee or predict a similar outcome.