The litigation, brought by Levi & Korsinsky, LLP, focuses on a period between April 16, 2025, and May 4, 2026. The complaint alleges that the company’s stock dropped 49.20%, or $33.42 per share, after management disclosed a $31.2 million impairment charge and reduced their full-year revenue guidance by approximately $65 million. Plaintiffs contend that both Stueland and Feeley, as controlling persons under Section 20(a) of the Securities Exchange Act, signed Sarbanes-Oxley certifications while aware that public statements regarding the Fabric Genomics acquisition were materially inaccurate.

According to the allegations, the executives maintained that the acquisition was on track to generate cost efficiencies and recurring revenue, despite having internal data suggesting the integration was failing. The lawsuit seeks to hold the individual defendants accountable for allegedly providing misleading projections to analysts and institutional investors. Class members who purchased shares during the specified period and incurred losses are eligible to participate in the action, regardless of whether they have since sold their holdings.