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Published March 4, 2025
When ICON revealed a “revenue shortfall” of $100 million and slashed financial projections, investors quickly dumped their shares. ICON’s stock price plunged 20%, prompting some investors to file a class-action lawsuit to recover their losses.
ICON is a research organization that assists biotech companies complete clinical trials. When the pharmaceutical industry got hit with rising costs and high interest rates, those companies dumped ICON to reduce costs. But ICON executives told investors it was benefitting from these market shifts and said business had “never been better.”
Investors learned the truth in October 2024 when ICON issued a shocking financial report. It revealed a $100 million “revenue shortfall” and slashed its annual revenue guidance by $220 million. Analyst research revealed ICON executives knew about those problems for months beforehand but hid the truth from investors.
Shocked investors quickly sold off their ICON stock. Some of those investors are now joining the class-action lawsuit.