SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (https://www.rgrdlaw.com/cases-progenity-inc-class-action-lawsuit.html) today announced that it filed a class action seeking to represent purchasers of Progenity, Inc. (NASDAQ:PROG) common stock pursuant and/or traceable to the registration statement, as amended (the “Registration Statement”), issued in connection with Progenity’s June 2020 initial public offering (“IPO”). This action was filed in the Southern District of California and is captioned Soe v. Progenity, Inc.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Progenity common stock pursuant to the June 2020 IPO to seek appointment as lead plaintiff in the Progenity class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Progenity class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Progenity class action lawsuit. An investor’s ability to share in any potential future recovery of the Progenity class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff in the Progenity class action lawsuit, you must move the Court no later than 60 days from today. If you wish to discuss the Progenity class action lawsuit or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian E. Cochran of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at bcochran@rgrdlaw.com. You can view a copy of the complaint as filed at https://www.rgrdlaw.com/cases-progenity-inc-class-action-lawsuit.html.
The Progenity class action lawsuit charges Progenity, certain of its officers and directors, and the underwriters of its IPO with violations of the Securities Act of 1933. Progenity specializes in developing and commercializing molecular testing products and precision medicine applications. The Company provides in vitro molecular tests designed to assist parents in making informed decisions related to family planning, pregnancy, and complex disease diagnosis.
On or about June 22, 2020, defendants conducted Progenity’s IPO. In the IPO, defendants sold over 6.6 million shares of Progenity common stock to the investing public at a price of $15 per share, generating over $100 million in gross offering proceeds.
The complaint alleges that the Registration Statement for the IPO was negligently prepared and, as a result, contained untrue statements of material fact, omitted material facts necessary to make the statements contained therein not misleading, and failed to make the necessary disclosures required under the rules and regulations governing its preparation. Specifically, the Registration Statement failed to disclose, inter alia, the following adverse facts that existed at the time of the IPO, rendering numerous statements provided therein materially false and misleading: (i) 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; (ii) 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 (iii) 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.
Shortly after the IPO, the price of Progenity stock suffered significant price declines. By August 14, 2020, Progenity stock closed at just $7.71 per share – nearly 50% below the $15 per share price investors paid for the stock in the IPO less than two months previously.
The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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