SAN FRANCISCO, Sept. 11, 2025 (GLOBE NEWSWIRE) -- Girard Sharp LLP, a national investment, securities, and consumer class action law firm, has filed a securities class action against Neogen Corporation (“Neogen”). According to the complaint, the class includes “all current and former 3M shareholders who received NEOG common stock in exchange for Garden SpinCo shares pursuant to the Merger Exchange (the “Class”)”.
Neogen is a Michigan corporation that, with its subsidiaries, “manufacture and market a diverse line of products and services dedicated to food and animal safety.” The Company’s Food Safety segment consists primarily of “diagnostic test products and complementary products (e.g., culture media) sold to food producers and processors to detect dangerous and/or unintended substances in human food and animal feed, such as foodborne pathogens, spoilage organisms, natural toxins, food allergens, genetic modifications, ruminant by-products, meat speciation, drug residues, pesticide residues and general sanitation concerns.” The Company’s Animal Safety segment is engaged in the “development, manufacture, marketing and distribution of veterinary instruments, pharmaceuticals, vaccines, topicals, diagnostic products, rodenticides, cleaners, disinfectants, insecticides and genomics testing services for the worldwide animal safety market.”
The offering materials for the Merger (“Offering Materials”) stated that the combined Company expected to “have improved EBITDA margins and stronger free cash flow relative to Neogen on a standalone basis, allowing Neogen to deleverage following the [Merger]” and “generate run-rate revenue and cost synergies of $30 million within three years following the closing of the [Merger] due to efficiencies in product innovation, sales, marketing, distribution and production.”
On January 10, 2025, Neogen announced its preliminary 2Q25 financial results and reported a net loss of $456.3 million due to a non-cash goodwill impairment related to the 3M Food Safety Division acquisition. Moreover, Neogen reported that, as of November 30, 2024, the Company had material weaknesses in its internal control over financial reporting. On April 9, 2025, Neogen announced its 3Q25 financial results, reporting a net loss of $11 million and a drop in revenue of 3.4% to $221 million. The Company also reported that its capital expenditures were expected to be approximately $100 million as a result of “lowered Adjusted EBITDA” and a “pull-forward of integration capex into fiscal 2025.” It also reported the Company’s CEO, John Adent, would be stepping down.
Since September 1, 2022, the date upon which Neogen issued shares to former or current 3M investors, Neogen’s share price has declined by 75%. Girard Sharp’s investigation focuses on whether the Offering Materials may have included misrepresentations and omissions regarding Neogen’s and 3M’s financial conditions and the Merger.
If you are a former or current 3M shareholder with losses, please fill out this form, email apolk@girardsharp.com, or call (866) 981-4800 for a free consultation.
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