NEW YORK, NY / ACCESSWIRE / October 10, 2020 / Pomerantz LLP is investigating claims on behalf of investors of Progenity, Inc. ("Progenity" or the "Company") (NASDAQ:PROG). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Progenity and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP