Neogen Faces Shareholder Investigation Following FDA Warning

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.

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.