INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of Foundation Medicine, Inc. Investors and Encourages Investors to Contact the Firm (FMI)

Business Wire

BENSALEM, Pa.--(BUSINESS WIRE)-- Law Offices of Howard G. Smith 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.

Investors suffering losses on their Foundation investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected].

The Complaint filed in this class action alleges that, during the Class Period, the Company made false and misleading statements regarding the Company’s Medicare reimbursement process and likelihood of coverage for Foundation’s tumor tests by Medicare; and therefore misled investors regarding 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, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at 215-638-4847, toll-free at 888-638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.