Pomerantz LLP announces that a class action lawsuit has been filed against Illumina, Inc. (“Illumina” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Southern District of California, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Illumina securities between July 26, 2016 and October 10, 2016, both dates inclusive (the “Class Period”), seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Illumina purportedly provides sequencing- and array-based solutions for genetic analysis. The Company claims that its customers include genomic research centers, academic institutions, government laboratories, hospitals, pharmaceutical, biotechnology, agrigenomics, commercial molecular diagnostic laboratories, and consumer genomics companies.
The complaint alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was experiencing a large decline in high throughput sequencing instrument sales; (2) that the decline was negatively impacting the Company’s revenue; (3) that the Company lacked visibility into trends that could have a substantial impact on the Company’s financial results; (4) that, as such, the Company’s revenue guidance was unreliable and overstated; and (5) that, as a result of the foregoing, Defendants’ positive statements about Illumina’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 10, 2016, Illumina issued a press release entitled “Illumina Announces Preliminary Revenue for Third Quarter of Fiscal Year 2016.” Therein, the Company announced estimated third quarter revenue of approximately $607 million, which was lower than the Company’s third quarter revenue guidance of $625 million to $630 million. The Company attributed the shortfall to “larger than anticipated year-over-year decline in high throughput sequencing instruments.” The Company also announced that it expected fourth quarter revenue to be flat to slightly up sequentially.
On this news, Illumina’s stock price fell $45.86 per share, or 24.8%, to close at $138.99 per share on October 11, 2016, on unusually heavy trading volume.