Bernstein Liebhard LLP Reminds Investors That Only 7 Days Remain to File a Lead Plaintiff Motion in a Securities Class Action Lawsuit Against Progenity, Inc.
Oct 23, 2020 2:45 PM ET
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Bernstein Liebhard, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action that has been filed on behalf of investors that purchased or acquired the securities of Progenity, Inc. in the United States between June 19, 2020 and August 28, 2020 (the "Class Period"). The lawsuit filed in the United States District Court for the Southern District of California alleges violations of the Securities Act of 1933.
If you purchased Progenity securities, and/or would like to discuss your legal rights and options please visit PROG Shareholder Lawsuit or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected]
The Complaint alleges that the Registration Statement for Progenity's 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.
If you wish to serve as lead plaintiff, you must move the Court no later than October 27, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased PROG securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/progenityinc-prog-shareholder-class-action-lawsuit-stock-fraud-297/apply or contact Matthew E. Guarnero toll free at (877) 779-1414 or [email protected]
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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Matthew E. Guarnero
Bernstein Liebhard LLP
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