In the world of gene sequencing, few names carry as much weight as Illumina (NASDAQ: ILMN). Its sequencing devices are among the most widely distributed in global hospitals and laboratories of all stripes, and its ongoing years-long efforts to develop new technologies place it at the cutting edge of the field, with few notable competitors anywhere in sight.

Despite its leadership, there's plenty of trouble brewing thanks to ongoing legal wrangling with regulatory authorities on two continents and a slowdown in some of its core market segments. Not all is lost; there's still a powerful long-term trend that'll support its share price. But if you're thinking about buying this stock, it'll behoove you to understand the most important two red flags as well as the big green flag that's impacting Illumina today. 

Illumina is currently facing some serious legal trouble in the E.U. to the point where it constitutes a red flag for its near-term performance.

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Source Fool.com