Neogen told investors the 3M merger was cooking — but in reality everything was rotten. For over a year, execs claimed the deal was “on track.” Then came a $461 million write-down, slashed guidance, and an 80% stock collapse when the merger synergies soured. Now, investors are suing.
It started in early 2023. Neogen told investors the 3M Food Safety merger was going just fine. If there were hiccups, they’d fix them. And quarter after quarter, they said things were moving alone.
But the lawsuit says that was a recipe for disaster. Integration problems were stacking up, revenue was slipping, and execs allegedly knew a giant goodwill impairment was coming. They just didn’t say so.
Then, the whole thing crumbled. In January 2025, Neogen dropped the $461 million bombshell, admitted to internal control issues, and lowered its outlook. In April, they cut guidance again and announced the CEO was leaving. By June, margins tanked — again.
The stock didn’t just dip. It sank — 5% in January, 28% in April, 17% in June. Total damage? Nearly 80% gone.
Now, more shareholders are joining the lawsuit.