LabCorp (NYSE: LH) will release its second quarter of 2019 financial results before the market opens on Thursday, July 27, 2019, and amid anticipation over its quarterly numbers, the company’s stocks are at a loss following a data breach affecting its partner billing, AMCA.
LabCorp closed Tuesday with a 0.73% decline from its already resilient stocks. While after-hours trading has seen a slight increase, controversies, and legal action against the company still affects its market performance. The company slightly went up by 0.27% on its after-hours trading.
LabCorp has been in the center of controversy following the announcement of a massive data breach involving American Medical Collection Agency, LabCorp’s billing partner whose portal has been hacked compromising financial data of more than 20 million Americans.
Last week, when the breach was fresh, shares of LabCorp have climbed 7.5% against the industry ‘s 4.1% decline over the last three months. Furthermore, the company reported strong underlying performance and organic revenue growth across both Diagnostics and Drug Development businesses, banking on solid execution of three fundamental strategies, which are delivering advanced diagnostics, bringing new medicines to patients faster and using technology to improve the patient care in the first quarter of 2019.
But the company’s future is still unclear for analysts. More than 11 class-suite actions have been filed against LabCorp and its partners for their inability to protect consumer data. The 11 lawsuits were recorded at The United States Judicial Panel on Multidistrict Litigation (JPML) on June 3. Since then, eight more lawsuits were filed against the companies in federal courts from New Jersey, New York, and California.
According to litigation experts, “If many cases are filed in federal court, any of the lawyers on any of those cases can file a motion with the JPML [..] to centralize the various federal cases that have been filed by sending all of them to a single judge for coordinated pre-trial proceedings.”