Schall, Brown & Schwartz LLP has joined Bragar Eagel & Squire, P.C. and Kirby McInerney LLP in investigating potential securities law violations by Myriad Genetics, Inc. (NASDAQ: MYGN). The legal scrutiny intensifies after Myriad’s stock price plummeted 47%, closing at $2.86 on July 31, 2026, following disappointing second-quarter financial results that missed Wall Street consensus and forced a sharp downgrade in full-year guidance.
The investigation centers on disclosures made on July 30, 2026, when Myriad reported Q2 revenue of approximately $190.7 million, down roughly 11% year-over-year. This figure fell 7% to 8% below the Wall Street consensus estimate of $206–$208 million. Simultaneously, the company slashed its full-year 2026 revenue guidance to $770–$790 million from the previously reiterated range of $860–$880 million—a reduction of approximately $90 million at the midpoint. Management also lowered gross margin expectations and suspended its adjusted EBITDA guidance entirely, which had been set at $37–$49 million.
Operational and Financial Pressures
Myriad attributed the shortfall to reimbursement pressure, collections issues, lower average revenue per test, and weaker prenatal performance. Average revenue per test fell by 9%, while hereditary cancer testing revenue declined by 13% despite an 8% increase in volume. The company identified "payer-generated revenue-cycle friction" as a key driver, citing changing prior-authorization requirements, increased medical-record requests, and higher denial rates.
New details reveal an $11 million reduction in revenue due to changes in collection estimates for tests completed in prior periods. Management acknowledged these issues were "not new" and admitted that earlier engagement with payers "could have reduced the downstream impact" on financial performance. Specifically, unfavorable estimate changes were associated primarily with first-quarter 2026 orders.
Key Financial Metrics
| Metric |
Value / Change |
| Q2 Revenue |
$190.7 million (down 11% YoY) |
| Consensus Miss |
7%–8% below $206–$208 million est. |
| Avg Revenue Per Test |
Down 9% |
| Hereditary Cancer Revenue |
Down 13% |
| Volume Increase |
Up 8% |
| Stock Price Drop |
47% (to $2.86) |
| FY26 Guidance |
$770–$790 million (cut from $860–$880m) |
| Collection Estimate Impact |
$11 million reduction |
Legal Proceedings
No lawsuit has been filed at this stage. Schall, Brown & Schwartz LLP, along with Bragar Eagel & Squire, P.C. and Kirby McInerney LLP, is determining whether claims can be brought under federal securities laws. Shareholders who purchased or acquired Myriad securities between the relevant periods are encouraged to contact litigation partners Brandon Walker or Melissa Fortunato at investigations@bespc.com or (212) 355-4648 to discuss their rights. Alternatively, investors may contact Brian Schall or David Schwartz of Schall, Brown & Schwartz LLP at 310-301-3335. Investors may also contact Lauren Molinaro of Kirby McInerney LLP at investigations@kmllp.com or (212) 699-1171.
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