According to the complaint, during the class period, defendants failed to disclose that: (i) Fulgent had been conducting medically unnecessary laboratory testing, engaging in improper billing practices in relation to laboratory testing, and providing or receiving remuneration in violation of the Anti-Kickback Statute and Stark Law; (ii) accordingly, Fulgent was likely to become subject to enhanced legal and regulatory scrutiny; and (iii) Fulgent's revenues, to the extent they were derived from the foregoing unlawful conduct, were unsustainable.