Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed Against Syneos Health, Inc. (SYNH) and Encourages Investors to Contact the Firm Before September 25, 2023 - Seite 2

On September 13, 2022, when Syneos filed with the SEC a current report on Form 8- K revealing that the Company expected to announce a book-to bill ratio in its Clinical Solutions segment for the trailing 12 months ending September 30, 2022 in the range of 1.05x to 1.15x, excluding reimbursable expenses. During an industry conference held later that day, defendant Keefe attributed the lower-than expected book-to-bill ratios to macroeconomic factors and to Syneos’s above-average exposure to SMID clients who were delaying contract awards. On this news, the price of Syneos shares declined by $8.65 per share, or approximately 13.65%, from $63.37 per share to close at $54.72 on September 13, 2022.

On November 4, 2022, Syneos issued a release disclosing the Company’s financial results for the third quarter of 2022. Syneos revealed that its book-to-bill ratios had plummeted below even the reduced figures provided in September 2022. On this news, the price of Syneos shares declined by $22.11 per share, or approximately 46.25%, from $47.81 per share to close at $25.70 on November 4, 2022.

The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Syneos’ business development capabilities had been materially impaired by workforce reductions and leadership and operational changes, as well as labor force turmoil caused by the COVID-19 pandemic; (ii) Syneos had struggled to integrate recent acquisitions, causing Syneos to suffer from a bloated and confused organizational structure and impairing Syneos’ ability to provide comprehensive or effective customer engagement across its product portfolio; (iii) Syneos was suffering from acute competitive disadvantages as clinical trials moved to remote monitoring and decentralized administration, as Syneos lacked the tools possessed by some of its rivals to successfully run remote and decentralized trials, such as certain data visualization and statistical modeling capabilities, and Syneos had failed to adapt to changing business demands in the wake of the COVID-19 pandemic; (iv) Syneos’ backlog, book-to-bill ratios, and net new business awards had been artificially inflated by more than $500 million through the inclusion of reimbursable expenses that Syneos would never collect; (v) as a result of the above, Syneos was struggling to execute on its existing contracts and to agilely respond to its client needs, causing Syneos to suffer client dissatisfaction across its client base; and (vi) consequently, Syneos was exposed to a material undisclosed risk that Syneos would lose customers, be unable to grow its client base or win significant contract renewals, and cede market share to its rivals.