NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Progenity, Inc. (NASDAQ:PROG) resulting from allegations that Progenity may have issued materially misleading business information to the investing public.
On or around June 19, 2020, Progenity conducted its initial public offering (“IPO”), selling 6.8 million shares priced at $15.00 per share. Then, on August 13, 2020, Progenity issued a press release announcing the Company’s financial results for the second quarter of 2020. Among other results, Progenity announced revenue of $17.27 million for the quarter, which missed consensus estimates by approximately $8.92 million. Progenity advised investors that “second-quarter revenues reflected a $10.3 million accrual for refunds to government payors” in connection with a settlement with the U.S. Department of Justice and participating states to resolve claims that Progenity had fraudulently billed federal healthcare programs for prenatal tests and provided kickbacks to physicians to induce to them to order Progenity tests for their patients.
On this news, Progenity’s stock price fell $1.24 per share, or 13.85%, to close at $7.71 per share on August 14, 2020.
Rosen Law Firm is preparing a securities lawsuit on behalf of Progenity shareholders. If you purchased securities of Progenity please visit the firm’s website at http://www.rosenlegal.com/cases-register-1932.html to join the securities action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at pkim@rosenlegal.com or cases@rosenlegal.com.
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm’s attorneys are ranked and recognized by numerous independent and respected sources. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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