Neogen Corporation (NEOG) Securities Class Action Lawsuit Update [August 26, 2025]

Introduction to Neogen Corporation (NEOG) Securities Lawsuit

A securities fraud class action lawsuit has been filed against Neogen Corporation (NASDAQ: NEOG) on behalf of investors who purchased Neogen stock between January 5, 2023, and June 3, 2025 (the “Class Period”). The case claims that Neogen and certain executives misled the public about the integration of the 3M Food Safety Division merger. 

According to the complaint, Neogen portrayed the integration as progressing much better than it was. In reality, inefficiencies arose, leading to disclosures of issues. Shareholders are now seeking to recover their losses. 

Neogen Corporation (NEOG) Securities Lawsuit Case Details  

Caption: Operating Engineers Construction Industry and Miscellaneous Pension Fund v. Neogen Corporation, et al. 

Case No.: 1:25-cv-00802 

Jurisdiction: U.S. District Court, Western District of Michigan 

Filed on:  July 18, 2025 

Neogen Corporation (NEOG) Company Profile  

Neogen is a food safety company.  It makes and markets food and animal products and services.  Neogen has two main business segments: Food Safety and Animal Safety. The Food Safety focuses on diagnostic test kits and other products to test for dangerous substances in human and animal food. The Animal Safety segment makes and sells veterinary pharmaceuticals and medical equipment.  

Class Period: 

January 5, 2023 through June 3, 2025 

Investors who purchased Neogen common stock during the class period might be eligible to join the Neogen class action lawsuit. 

Allegations in the Neogen Corporation (NEOG) Securities Lawsuit 

Neogen and its execs fed investors a line about the 3M Food Safety merger integration. They hid ugly truths from earnings calls, financial reports, and SEC filings, making the process look smoother than it was, propping up stock prices until the wheels came off. 

It started with rosy earnings calls where they downplayed hitches. On the January 5, 2023, Q2 FY23 call, Adent said integration was progressing as planned, brushing off any bumps as minor. The Q3 FY23 call in March kept the spin, with Adent saying they were "on track" despite early snags. By July's Q4 FY23 call, Naemura assured these inefficiencies were understood and fixes were rolling. October's Q1 FY24 call echoed this, Adent claiming "good progress" on synergies. 

Financial reports backed the hype. The FY23 Form 10-K touted "successful integration," glossing over drags on revenue. Q1 FY24 Form 10-Q admitted some "temporary inefficiencies" but spun them as fixable quick and assured investors of continued strength. Q2 FY24 10-Q in January 2024 noted "ongoing integration efforts" without spilling on deeper woes. By Q3 FY24 10-Q, they cut guidance but blamed it on "market conditions," not core messes. 

SEC filings like 8-Ks attached to earnings releases repeated the tale, highlighting "strategic milestones" while burying risks. The suit says these omissions were no slip—execs knew goodwill impairments loomed from botched integration but kept quiet. When the January 10, 2025, 8-K dropped a $461 million impairment bomb and slashed guidance, it cracked the facade. April's Q3 FY25 8-K admitted revenue drops from "integration issues," with CEO Adent stepping down. June's bombshell on EBITDA margins tanking sealed it. Investors got burned, buying at inflated prices on false confidence in a merger gone sour. 

The Truth Emerges  

On January 10, 2025, the Company revealed GAAP net income in the second quarter was significantly negative due to a $461 million non-cash goodwill impairment charge related to the 3M acquisition. Neogen updated its full year outlook.  The company slashed its FY25 revenue and earnings guidance. Neogen also admitted to material weaknesses in its internal controls, and that that problem was noticed as of November 30, 2024. 

One financial quarter later, on April 9, 2025, Neogen announced that quarterly revenue fell 3.4% to $221 million, in part, due to integration issues. Neogen again cut its FY25 revenue and EBITDA outlook and noted that capital expenditures were expected to be $100 million as a result of lowered adjusted EBITDA and a pull-forward of integration-related capital expenditures into FY25. Neogen revealed that the Company’s CEO would be stepping down. 

On June 4, 2025, Neogen revealed that it expected EBITDA margin to probably be around the high-teens which represented a considerable drop from the previous quarter’s profit margin of 22%. 

Market Reaction  

The stock took multiple hits: 

• After the January 2025 news, it sank 5%; 

• After the April 2025 news, it plunged another 28%; and, 

• After the June 2025 news, it slumped another 17%. 

From the Company’s August 15, 2023 high of $23.84 per share through its June 4, 2025 closing price of $4.96 per share, Neogen’s stock price dropped $18.88 per share, or 79%.  That plunge wiped out more than $4 billion of the Company’s market cap. 

Next Steps  

• Submissions for lead plaintiff are due September 16, 2025. 

• The Court will issue its order for lead plaintiff and counsel in the weeks after lead plaintiff submissions are due.    

• The Court will then consider motion for class certification.    

• The Court will later consider a Motion to Dismiss.    

To learn if you are eligible for recovery under the Neogen Corporation securities class action lawsuit, visit the case submission page here. 

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.