| COMPANY |
Illumina, Inc. |
| COURT |
United States District Court for the Southern District of California |
| CASE NUMBER |
23-cv-02082 |
| JUDGE |
The Hon. Linda Lopez |
| CLASS PERIOD |
May 1, 2023 through October 16, 2023 |
| SECURITY TYPE |
Securities |
Illumina investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than January 9, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Illumina, Inc. (“Illumina”) (NASDAQ: ILMN) securities between May 1, 2023 and October 16, 2023, both dates inclusive (the “Class Period”).
Case Background:
By way of background, in 2015, Illumina formed GRAIL, Inc. (“GRAIL”) as a corporate subsidiary to develop a blood-based cancer detection test. Illumina initially spun-off GRAIL in February 2017 and then reacquired it in September 2020.
On April 28, 2023, Carl C. Icahn (“Icahn”), who was the beneficial owner of approximately 1.4% of the outstanding shares of Illumina as of February 17, 2023, issued an open letter to Illumina shareholders which demanded an independent investigation into the spin-off and reacquisition of GRAIL as it was alleged that Illumina insiders personally benefited from those transactions.
The Class Period begins on May 1, 2023 when Illumina issued a press release and shareholder letter in connection with the annual stockholder meeting to be held on May 25, 2023. In that letter, Illumina responded to Icahn’s open letter claiming that Icahn’s “allegations are completely false.” A few weeks later, on May 18, 2023, the company issued another press release which stated that “no director who oversaw any part of the GRAIL transaction has ever owned any equity interest in GRAIL.”
On August 10, 2023, Illumina disclosed that the SEC was investigating the company’s statements regarding its recent acquisition of GRAIL including conduct and compensation of certain members of Illumina and GRAIL management. Following this news, the price of Illumina shares declined by $4.64 per share, or approximately 2.51%, from $185.12 per share to close at $180.48 on August 11, 2023.
Then, on October 17, 2023, Icahn filed a complaint against current and former directors of Illumina, alleging claims of breaches of fiduciary duty. The complaint was filed under seal, but according to analyst Reuters, Icahn said that the lawsuit pertained to Illumina completing its acquisition of GRAIL. Following this news, the price of Illumina shares declined by $7.42 per share, or approximately 5.63%, from $131.87 per share to close at $124.45 on October 18, 2023.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Illumina’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) certain of the company’s insiders had personal financial motives for acquiring GRAIL; (2) contrary to Illumina’s attempts to discount Icahn’s criticism, Icahn had accurately concluded that insiders’ interests did not align with the company’s best interests; and (3) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.