NEW YORK–(BUSINESS WIRE)–Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed against Sema4 Holdings Corp. (“Sema4” or the “Company”) (NASDAQ: SMFR, SMFRW) in the United States District Court for the District of Connecticut on behalf of all persons and entities that have purchased or held Sema4 securities between March 14, 2022 and August 15, 2022 otherwise, including both dates (the “Class Period”). Investors have until November 7, 2022 to apply to the court to be appointed as lead plaintiff in the lawsuit.
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On August 15, 2022, after the market closed, Sema4 announced changes to its research and development leadership team, including Defendant Schadt’s resignation as President and Chief R&D Officer. The company also announced that it is eliminating approximately 13% of its workforce as part of a series of restructurings and corporate realignments. During the related conference call, Sema4 revealed that it had “reversed $30.1 million in revenue this quarter related to prior periods,” in connection with negotiations with “one of the [Sema4’s] larger commercial payers regarding the potential refund of payments for Sema4 carrier screening services provided from 2018 to early 2022.”
On this news, Sema4’s stock fell $0.80, or 33.3%, to close at $1.60 per share on Aug. 16, 2022, following unusually high trading volume.
The complaint filed in this class action alleges that during the class term, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations and prospects. In particular, defendants failed to disclose to investors: (1) that there was a significant risk that Sema4 would reverse a material amount of previously withdrawn income that it could not recover from third party payers; (2) that the company experienced declining sales prices for its reproductive health segment; (3) that, as a result of the foregoing, Sema4’s financial results would be adversely affected; and (4) that, as a result of the foregoing, defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or had no reasonable basis.
If you have purchased or otherwise acquired Sema4 Shares and suffered a loss, are a long-term shareholder, have information, would like to learn more about these claims, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There are no costs or obligations for you.
About Bragar Eagle & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, visit www.bespc.com. Lawyer advertising. Previous results do not guarantee comparable results.