Glancy Prongay & Murray Announces the Filing of a Securities Class Action on Behalf of Foundation Medicine, Inc. Investors and Encourages Investors to Contact the Firm

Business Wire

LOS ANGELES--(BUSINESS WIRE)-- Glancy Prongay & Murray LLP (“GPM”) announces that a class action lawsuit has been filed on behalf of investors who purchased Foundation Medicine, Inc. (“Foundation” or the “Company”) (NASDAQ: FMI) securities between February 26, 2014 and November 3, 2015, inclusive (the “Class Period”). Foundation investors have until September 26, 2017 to file a lead plaintiff motion. To obtain information or participate in the class action, please visit the Foundation case page on our website at http://www.glancylaw.com/case/foundation-medicine-inc.

The Complaint filed in this class action alleges that, during the Class Period, the Company made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and prospects. Specifically, the complaint alleges that the defendants made false and/or misleading statements regarding: (i) the reimbursement process and likelihood of coverage for Foundation’s tumor tests by Medicare; and (ii) the Company’s financial guidance. As a result of these false statements, Foundation common stock traded at artificially inflated prices during the Class Period.

On July 29, 2015, the Company disclosed that “clinical volume growth was affected by slower than anticipated progress towards obtaining a local coverage determination from our regional Medicare Administrative Contractor (MAC) and by some competitive noise in the market” and that, as such, the Company was “adjusting” its guidance for clinical volume and annual revenues. Then, on November 3, 2015, the Company disclosed a further revision to the already reduced number of clinical tests it expected to report for 2015.

On this news, the price of Foundation common stock fell $6.62 per share, to close at $17.31 per share on November 4, 2015.

If you purchased shares of Foundation during the Class Period you may move the Court no later than September 26, 2017 to ask the Court to appoint you as lead. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.