Progenity is facing a class action lawsuit alleging that the Company made materially false and/or misleading statements and/or failed to disclose that: (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 initial public offering 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.
If you incurred a loss on PROG stocks purchased between June 19, 2020 and January 1, 3000, this lawsuit is on your behalf. The lawsuit was filed in the the United States District Court for the Southern District of California, and our firm is reaching out to investors to discuss their legal rights.
If you wish to act as a representative of the shareholders harmed by this misconduct, you may ask the court to appoint you as lead plaintiff. A lead plaintiff directs the litigation and participates in important decisions, including whether to accept a settlement for the class in the action.
You only have until October 27, 2020 to apply to be lead plaintiff. The court will then evaluate the applicants and choose a lead plaintiff. You are not required to act as a lead plaintiff in order to participate in any recovery.
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