The FDA’s intervention centers on HYCOAT, a product marketed as sterile but found to contain multiple fungal species during agency testing. While the product is a component of Neogen’s Animal Safety segment—a division that posted $54.5 million in third-quarter revenue for fiscal 2026—the full financial fallout remains unclear. Reports indicate that nearly 100 horses have been affected by the contaminated supply, raising concerns among investors regarding potential regulatory fines and long-term litigation costs.
In section Releases
Neogen Faces Shareholder Investigation Following FDA Warning
A 7.22% drop in Neogen stock has triggered a formal investigation by law firm Levi & Korsinsky. The decline follows an FDA warning regarding the company’s HYCOAT veterinary product, which has been linked to severe fungal contamination and the deaths of at least 20 horses across the United States.
Levi & Korsinsky is currently evaluating whether Neogen violated securities laws by failing to properly disclose the risks associated with the product recall. The firm is inviting investors who incurred losses to submit documentation for an evaluation of potential recovery options. While the company has not yet quantified the reserve impacts of the HYCOAT matter, the investigation focuses on whether shareholders were misled about the safety and operational integrity of the company’s veterinary business.
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