Medpace (MEDP) told investors cancellations were “well behaved” and that a 1.15 book-to-bill target remained achievable for the second half of 2025. But according to the complaint, defendants allegedly concealed the true state of cancellation trends and the risk that elevated cancellations, including in metabolic studies, would undermine that target.
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Shareholders who bought Medpace stock during a roughly ten-month window are alleging the company misled them about a key business metric, leading to a sharp stock decline when the real numbers emerged.
A federal lawsuit filed in the Southern District of Ohio alleges that Medpace Holdings Inc. and three of its top executives repeatedly told investors to expect a 1.15 book-to-bill ratio in the second half of fiscal 2025, while allegedly concealing the true state of backlog cancellation rates. When the company reported a fourth quarter 2025 book-to-bill ratio of just 1.04 on February 9, 2026, Medpace shares dropped from $530.35 at close that day to $446.05 the following session, a decline of more than 15.9%, according to the complaint. The proposed class period runs from April 22, 2025, through February 9, 2026.
If you purchased Medpace Holdings (MEDP) stock during this period and suffered losses, you may want to review your legal options.
What Medpace Does
Medpace Holdings Inc. is a clinical contract research organization, commonly known as a CRO, focused on providing outsourced clinical development services to the biotechnology, pharmaceutical, and medical device industries, according to the complaint. The company describes its operating model as centered on full-service clinical development services from Phase I through Phase IV and therapeutic expertise. Medpace is headquartered in Cincinnati, Ohio, and its common stock traded on the NASDAQ Stock Market under the ticker symbol MEDP during the class period.
What Investors Are Alleging
The lawsuit centers on what plaintiffs describe as a sustained pattern of misleading guidance around Medpace’s book-to-bill ratio, which measures new business awards relative to revenue and is a closely tracked indicator of future growth in the CRO industry. According to the complaint, defendants repeatedly characterized cancellation rates as well-behaved and assured investors that the business pipeline was broad-based and not reliant on a narrow set of studies, while allegedly concealing the true state of backlog cancellation rates. The complaint further alleges that defendants knew or recklessly disregarded the true state of the company’s backlog cancellation rates, particularly in the metabolic therapeutic area, and failed to disclose that information to the investing public.
If you are following this case and want to stay informed about developments, you can check eligibility resources or monitor case filings as this litigation progresses.
What Management Said
During an April 22, 2025, earnings call covering first-quarter 2025 results, President Jesse J. Geiger reported revenue of $558.6 million and noted a book-to-bill of 0.9 for the quarter, while the company simultaneously projected that approximately $1.61 billion in backlog would convert to revenue over the next 12 months. CEO August James Troendle acknowledged on that same call that if cancellations continued at their then-current pace, the company would likely remain at a book-to-bill of 1.0, but still expressed confidence in paths to reaching 1.15.
On July 22, 2025, Troendle stated that cancellations were down across the pipeline and described them as very well behaved during the second quarter, reporting a book-to-bill of 1.03. He also noted that the company continued to see strong potential for book-to-bill to return to above 1.15 in the third quarter. During the October 23, 2025, earnings call, Troendle reported record net bookings and a net book-to-bill of 1.20 for the third quarter, again characterizing cancellations as well-behaved. CFO Kevin M. Brady, responding to an analyst question during that same call, described the strong quarterly performance as pretty broad-based, not isolated to a handful of studies, according to the complaint.
How the Alleged Truth Emerged
On February 9, 2026, after the market closed, Medpace published fourth-quarter 2025 earnings results, revealing net new business awards of $736.6 million and a book-to-bill ratio of 1.04, well below the 1.15 guidance the company had promoted throughout the class period. In the associated earnings call held on February 10, 2026, CEO Troendle disclosed that backlog cancellations, in both absolute and percentage terms, were the highest in over a year, and he acknowledged not having anticipated the fourth-quarter spike. He further noted that cancellations were somewhat skewed toward the metabolic area. Earlier in the class period, management had also told investors that performance was broad-based and not isolated to a handful of studies, according to the complaint.
Following that disclosure, Medpace shares fell from $530.35 at the close on February 9, 2026, to $446.05 on February 10, 2026, a decline of more than 15.9%, according to the complaint. Analyst reports cited in the complaint, including those from Baird Equity Research and Truist, highlighted the book-to-bill miss as a surprise to investors and noted the inherent volatility and limited visibility associated with Medpace’s pre-backlog business model.
Why This Case May Matter to Shareholders
The core issue for investors, as framed in the complaint, is whether Medpace management presented an overly optimistic picture of the business while allegedly withholding information about cancellation trends that undermined the 1.15 book-to-bill target. Plaintiffs allege that because the stock price was artificially inflated by misleading guidance throughout the class period, investors who purchased shares paid more than the stock was actually worth. The sharp decline following the February 9 disclosure is cited as evidence that the market had not previously priced in the true state of the company’s backlog and cancellation dynamics.
The Legal Claims
The complaint asserts two counts under federal securities law. Count I alleges violations of Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5, which prohibit materially false or misleading statements made in connection with the purchase or sale of securities. Count II alleges violations of Section 20(a) of the Exchange Act, which imposes liability on individuals who are control persons of a company that commits a primary securities law violation, targeting CEO Troendle, President Geiger, and CFO Brady individually.
If you purchased Medpace Holdings stock between April 22, 2025, and February 9, 2026, and would like to learn more about your rights, you may wish to consult with a securities attorney.
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