LOS ANGELES–(BUSINESS WIRE) – Frank R. Cruz Law Firm announces that a class action lawsuit has been filed on behalf of the individuals and entities that have purchased or otherwise acquired Progenity, Inc. ("Progenity" or the "Company") (NASDAQ: PROG). Common stock pursuant to and / or traceable pursuant to the registration statement issued in connection with the Company's initial public offering (“IPO”) in June 2020. Descendant investors have until October 27, 2020 to file a motion from the lead plaintiff.
If you are a shareholder who has suffered a loss, click here to participate.
In June 2020, Progenity completed its initial public offering, selling approximately 6.7 million shares for $ 15.00 per share.
On August 13, 2020, Progenity announced the results for the second quarter of 2020 in a press release. In it, the company announced that "second quarter revenues reflected a provision of $ 10.3 million for government reimbursements," related to an agreement reached with the US Department of Justice and several states to address the allegations to clarify that Progenity had fraudulently billed federal health programs for prenatal testing and setbacks for doctors to get them to order progeny tests for their patients.
In that 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 the defendants made materially false and / or misleading statements and failed to disclose material adverse facts about the company's business, business and prospects. Specifically, Defendants have failed to advise investors: (1) that Progenity overburdened government debtors by $ 10.3 million in 2019 and early 2020, significantly increasing their revenue, profits and operating cash flows for the historical financial periods reported in the United States had overrated registration statement; (2) that Progenity would have to reimburse this overpayment in the second quarter of 2020 (the same quarter that the IPO was conducted), which will adversely affect quarterly results; and (3) that Progenity suffered in the second quarter of 2020 as the Company's negative trends in test volume, revenue, and product prices accelerated.
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If you purchased Progenity securities during the class period, you can ask the court to appoint the lead plaintiff no later than October 27, 2020. You don't need to take any action at this point to be a member of the class. You can keep an attorney of your choice or you can take no action and remain an absent member of the class. If you have purchased Progenity securities, have information or would like to learn more about these claims, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Frank R. Cruz of the Frank R. Law Firms. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, 310-914-5007, by email at firstname.lastname@example.org or visit our website at www.frankcruzlaw.com. When inquiring by email, please include your mailing address, telephone number and number of shares purchased.
This press release may be viewed as a solicitor advertisement in some jurisdictions under applicable laws and ethical rules.