A lawsuit on behalf of investors who purchased GXDX shares between July 31, 2009 and June 15, 2010 against Genoptix, Inc. over alleged violations of Federal Securities Laws. Meanwhile an investigation on behalf of current long term investors in Genoptix, Inc. (NASDAQ:GXDX), including also those who purchased also prior to July 2009 and presently continue to hold those GXDX shares, over possible breaches of fiduciary duty by the Genoptix management was announced.

The investigation by a law firm on behalf of current long term investors in stock of Genoptix, Inc. (NASDAQ:GXDX) concerns whether certain current and/or former officers and members of the Genoptix board of directors can be held liable in connection with the alleged Securities Laws violations in the lawsuit by investors who purchased GXDX stock between July 31, 2009 and June 15, 2010. According to the securities class action complaint filed in the United States District Court for the Southern District of California against Genoptix, Inc. the plaintiff alleges that Carlsbad, California based Genoptix Inc violated the Securities Exchange Act of 1934 by issuing between July 31, 2009 and June 15, 2010 materially false and misleading statements regarding its business and financial results. Genoptixs 12 months Total Revenue increased from $24.02million in 2006 to $184.38million in 2009. Its Net Income over the same time frame went from a Net Loss of $3.76million to a Net Income of $30.63million in 2009. Genoptix reported for the first 9months in 2010 a combined Total Revenue of $147.86million with a combined Net Income of $15.35million.
But the plaintiff claims that while defendants continuously hyped Genoptixs approach to hematology and oncology testing and diagnostics, projecting they would easily be able to double or triple the size of Genoptixs market share in the next three to five years, in reality the defendants failed to disclose that Genoptixs business model was not working and was causing Genoptix to actually lose market share. Shares of Genoptix, Inc. (NASDAQ: GXDX) traded during 2008 and 2009 in a range of between $23 and $38. The plaintiff claims that as a result of defendants false statements, Genoptixs stock (GXDX) traded at artificially inflated prices between July 31, 2009 and June 15, 2010, reaching a high of $38.79 per share on April 30, 2010 falling significantly in June when, Genoptix issued a press release providing a first look at its second quarter 2010 performance and updating its guidance for the full-year 2010. The Company reduced its revenue guidance to $210 million, down from previous guidance of $235 to $240 million, and its earnings per share guidance to $1.20 per share, down from previous guidance of $1.80 to $1.85 per share. On this news, Genoptixs stock fell another $5.69 per share to close at $17.19 per share on June 16, 2010, a one-day decline of 25% on high volume. Since June GXDX shares continued to traded at roughly $18 until September 2010, when Genoptix lost value to the its 3Q forecasts. Over the past months GXDX shares were able to regain some value and traded at $18.20per share, still more then 50% lower than in April 2010.