SOURCE: Izard Nobel LLP

December 14, 2010 17:53 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Genoptix, Inc.

WEST HARTFORD, CT--(Marketwire - December 14, 2010) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of California on behalf of purchasers of the common stock of Genoptix Inc. ("Genoptix" or the "Company") (NASDAQ: GXDX) between July 31, 2009 and June 15, 2010, inclusive (the "Class Period"). 

The Complaint charges that Genoptix and certain of its officers and directors violated federal securities laws by issuing materially false statements regarding the Company's business and financial results. Specifically, defendants hyped the Company's approach to hematology and oncology testing and diagnostics, projecting they would easily double or triple the size of the Company's market share in the next three to five years, while failing to disclose that Genoptix's business model was not working and was causing Genoptix to actually lose market share. As a result of defendants' false statements, Genoptix's stock traded as high as $38.79 per share on April 30, 2010.

On May 6, 2010, Genoptix announced first quarter 2010 financial results far below consensus. Then, on June 16, 2010, Genoptix issued a press release providing a first look at its second quarter 2010 performance and reducing revenue and earnings guidance for the full-year. On this news, Genoptix fell $5.69 per share to $17.19 per share on June 16, 2010, a drop of 25%.

If you are a member of the class, you may, no later than February 4, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/genoptix/, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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