NEW YORK, NY / ACCESSWIRE / August 11, 2017 / Pomerantz LLP is investigating claims on behalf of investors of Foundation Medicine, Inc. ('Foundation' or the 'Company') (NASDAQ: FMI). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, Ext. 9980.
The investigation concerns whether Foundation and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On July 29, 2015, Foundation issued a press release announcing its second quarter 2015 financial results and downgrading its financial guidance. The Company stated, in part, that Foundation's 'clinical volume growth was affected by slower than anticipated progress toward obtaining a local coverage determination from [its] regional Medicare Administrative Contractor,' and that '[a]s a result, [the Company was] adjusting guidance for clinical volume and annual revenues.' The Company reduced its 2015 clinical test guidance to 'between 35,000 and 38,000 clinical tests,' down significantly from 'between 43,000 and 47,000 clinical tests in 2015,' and its 2015 revenue guidance to 'the range of $85 to $95 million,' also down significantly from 'the range of $105 - $115 million.' On a conference call with investors that same day, Foundation's CEO stated that the Company was 'no longer assuming any Medicare payment for the rest of 2015.' On this news, Foundation's share price fell $7.00, or 23.89%, to close at $22.30.
Then, on November 3, 2015, Foundation disclosed a further revision to the number of clinical tests it expected to report for 2015, updating its range to 32,000 to 33,000, a material reduction from the range announced on July 29, 2015. On this news, Foundation's share price fell $6.62, or 27.66%, to close at $17.31 on November 4, 2015.
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SOURCE: Pomerantz LLP
