Sema4 Holdings Corp.

Sema4 Holdings Corp. (SMFR) Failed to Disclose it Would Reverse a Material Amount of Previously Recognized Revenue it Could Not Recoup From Third Party Payors and That it was Experiencing Declining Selling Prices for its Reproductive Health Segment

According to the complaint, on August 15, 2022, the Company announced changes to its research and development leadership team, including that Eric Schadt was stepping down from his roles as President and Chief R&D Officer. The Company also disclosed that it was eliminating approximately 13% of its workforce as part of a series of restructuring and corporate realignments. During the related conference call, Sema4 revealed that it had “reversed $30.1 million of revenue this quarter related to prior periods,” in connection with negotiations with “one of [Sema4’s] larger commercial payors regarding the potential recoupment of payments for Sema4 carrier screening services rendered from 2018 to early 2022.”  On this news, Sema4’s stock fell $0.80, or 33.3%, to close at $1.60 per share on August 16, 2022.

Next Steps: If you acquired shares of Sema4 Holdings Corp (SMFR) between March 14, 2022 and August 15, 2022, you have until November 7, 2022, to ask the court to appoint you lead plaintiff for the class.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery.  

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

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