LAWSUIT ALERT – Andrews & Springer LLC Announces That A Securities Fraud Class Action Has Been Filed By A Law Firm Against Foundation Medicine, Inc. - FMI

WILMINGTON, Del., Aug. 07, 2017 -- Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announces that a securities fraud class action lawsuit has been filed by another law firm on behalf of shareholders of Foundation Medicine, Inc. (NASDAQ:FMI) (“Foundation Medicine” or the “Company”) for possible corporate misconduct and violations of securities laws.

A copy of the complaint is available from the Court or from Andrews & Springer LLC. If you currently own shares of Foundation Medicine and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/foundation-medicine-class-action-investigation/ or contact Craig J. Springer, Esq. at [email protected], or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE. 

According to the lawsuit, from February 26, 2014 through November 3, 2015, Foundation Medicine and its senior executives made fraudulent and misleading statements violating federal securities laws by misleading investors regarding the Company’s reimbursement process for its tumor tests.

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 Medicine 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 Medicine common stock fell $7 per share, or approximately 24%, costing investors millions in losses.

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.

A Foundation Medicine shareholder represented by another law firm has filed a class action complaint against Foundation Medicine for federal securities fraud.  The complaint was filed in the United States District Court, District Massachusetts, Case No. 1:17-cv-11394.

According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements concerning: (i) the reimbursement process and likelihood of coverage for Foundation Medicine’s tumor tests by Medicare; and (ii) the Company’s financial guidance. As a result of these false statements, Foundation Medicine common stock traded at artificially inflated prices during the Class Period. When the true details entered the market, the lawsuit claims that investors suffered damages.

If you currently own shares of Foundation Medicine and want to receive additional information and protect your investments free of charge, please visit us at http://www.andrewsspringer.com/cases-investigations/foundation-medicine-class-action-investigation/ or contact Craig J. Springer, Esq. at [email protected], or call toll free at 1-800-423-6013. You may also follow us on LinkedIn – www.linkedin.com/company/andrews-&-springer-llc, Twitter – www.twitter.com/AndrewsSpringer or Facebook - www.facebook.com/AndrewsSpringer for future updates. 

Andrews & Springer is a boutique securities class action law firm representing shareholders nationwide who are victims of securities fraud, breaches of fiduciary duty or corporate misconduct. Having formerly defended some of the largest financial institutions in the world, our founding members use their valuable knowledge, experience, and superior skill for the sole purpose of achieving positive results for investors. These traits are the hallmarks of our innovative approach to each case our Firm decides to prosecute. For more information please visit our website at www.andrewsspringer.com. This notice may constitute Attorney Advertising.

Contact:
Craig J. Springer, Esq.
[email protected]
Toll Free: 1-800-423-6013