Neogen Corporation shareholders lost money when the stock fell roughly 7.2% after FDA action concerning the recalled Neogen Vet product HYCOAT, which was linked to fungal contamination, nearly 100 affected horses, and at least 20 horse deaths. Previously, on July 30, 2026, during the fourth quarter fiscal 2026 earnings call, Chief Executive Officer Mikhael Nassif stated that the Company had "resolved prior supply and quality challenges and significantly improved service levels." Additionally, in its third quarter fiscal 2026 earnings release on April 9, 2026, the Company reported that its Animal Safety segment revenue decreased to $54.5 million, attributing the decline to "third-party supplier issues." During the corresponding earnings call, Mikhael Nassif stated that these issues stemmed "primarily from disruptions at our third-party suppliers." Earlier, on July 30, 2024, Chief Executive Officer John Adent stated that "channel inventory levels and end user demand for our product categories remain roughly stable compared to the prior quarter." The investigation concerns whether Neogen Corporation adequately disclosed the contamination, horse deaths, and regulatory risks associated with its HYCOAT product ahead of the FDA warning action.