Myriad Faces Multiple Investigations Over Share Price Drop

Claims that Myriad (NASDAQ:MYGN) potentially made false Medicare and Medicaid payment requests has led to a hurricane of investigations from various law firms.

Inquiries were triggered when Myriad revealed on on March 12 that it had received a subpoena from the Department of Health and Human Services (HHS) in connection with the investigation Following the announcement, Myriad’s share price dropped 12.14 percent from $33.02 to $29.01 as of March 13.

All three law firms have the same message of taking action on behalf of investors who may have lost a significant amount of money as Myriad’s share price dipped resulting from the potential claims. The firms investigating include Pomerantz  LLP, Bragar Eagel & Squire P.C, and Kirby McInerney LLP.

“The subpoena requested that the company produce documents relating primarily to the company’s billing to government-funded healthcare programs for the company’s hereditary cancer testing,” Myriad said in the disclosure. It also said no claims against the company have been made.

Myriad is spearheading personalized medicine through its molecular diagnostics to accurately diagnose, assess the risk of disease progression and guide treatment. The company expects to lower healthcare costs and improve patient care through its molecular tests.

Investors understand there is always a risk investing in any company, but the problem here is when a company may have potentially used illegal tactics, investors have a opportunity to take legal action.

Investor Takeaway

Since the initial price share drop on March 12, share prices haven’t fluctuated significantly, although Myriad’s share price did increase 5.86 percent to close at $29.11 on Thursday (March 22).

On March 13, Piper Jaffray analyst William Quirk reiterated a “hold” rating for Myriad. Quirk believes the subpoena is concerning and the shares are likely stay in the same price until the its resolved.

While it currently  may be a difficult time for Myriad’s investors, a resolution to the subpoena could push its share prices back on the rise.

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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.