SAN DIEGO–(BUSINESS WIRE)–$SMFA #AI—The Class: Shareholder rights law firm Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Sema4 Holdings Corp. (NASDAQ: SMFR) securities between March 14, 2022 and August 15, 2022, for violations of the Securities Exchange Act of 1934. Sema4 is a health company that uses artificial intelligence to enable personalized medicine.
If you would like more information about Sema4 Holdings Corp’s misconduct, click here.
What is this Case About: Sema4 Holdings Corp. (SMFR) Failed to Disclose it Would Reverse a Material Amount of Previously Recognized Revenue it Could Not Recoup From Third Party Payors and That it was Experiencing Declining Selling Prices for its Reproductive Health Segment
According to the complaint, on August 15, 2022, the Company announced changes to its research and development leadership team, including that Eric Schadt was stepping down from his roles as President and Chief R&D Officer. The Company also disclosed that it was eliminating approximately 13% of its workforce as part of a series of restructuring and corporate realignments. During the related conference call, Sema4 revealed that it had “reversed $30.1 million of revenue this quarter related to prior periods,” in connection with negotiations with “one of [Sema4’s] larger commercial payors regarding the potential recoupment of payments for Sema4 carrier screening services rendered 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 August 16, 2022.
Next Steps: If you acquired shares of Sema4 Holdings Corp (SMFR) between March 14, 2022 and August 15, 2022, you have until November 7, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Sema4 Holdings Corp settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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