|Company Name||Progenity, Inc.|
|Class Period||June 19, 2020 to August 28, 2020|
|Lead Plaintiff Motion Deadline||October 27, 2020|
In June 2020, Progenity completed its IPO, in which it approximately 6.7 million shares for $15.00 per share.
On August 13, 2020, Progenity announced its second quarter 2020 results in a press release. Therein, the Company disclosed that “second-quarter revenues reflected a $10.3 million accrual for refunds to government payors,” related to a settlement with the U.S. Department of Justice and several states to resolve claims that Progenity had fraudulently billed federal healthcare programs for prenatal tests and provided kickbacks to physicians to induce them to order Progenity tests for their patients.
On this news, the Company’s share price fell $1.24, or 14%, to close at $7.71 per share on August 14, 2020.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Progenity had overbilled government payors by $10.3 million in 2019 and early 2020 and, thus, had materially overstated its revenues, earnings and cash flows from operations for the historical financial periods provided in the Registration Statement; (2) that Progenity would need to refund this overpayment in the second quarter of 2020 (the same quarter in which the IPO was conducted), adversely impacting its quarterly results; and (3) that Progenity was suffering from accelerating negative trends in the second quarter of 2020 with respect to the Company’s testing volumes, revenues and product pricing.
Submit Your Information
If you suffered a loss on your Progenity, Inc. investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.
An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.