(PROG) ALERT: Progenity Investors Reminded of Class Action Deadline; Investors with Losses Encouraged to Contact Firm - Johnson Fistel, LLP

SAN DIEGO, Oct. 3, 2020 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP reminds investors that a class action lawsuit has been filed against Progenity, Inc. ("Progenity" or the "Company") (NASDAQ: PROG) pursuant and/or traceable to the Company's initial public offering conducted in June 2020.

If you wish to serve as a lead plaintiff, you must move the Court no later than October 27, 2020.

[Click here to join this action]

On or about June 6, 2020, Progenity sold about 6.7 million shares of stock in its initial public stock offering (the "IPO"), at $15.00 a share, raising nearly $100.5 million in new capital.

The class-action lawsuit 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, 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 flow 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 concerning Progenity's testing volumes, revenues and product pricing.

Since the IPO, Progenity stock has plummeted, on August 18, 2020, the stock closed at $9.56.

A lead plaintiff will act 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 any potential future recovery of the Progenity class action lawsuit is not dependent upon serving as lead plaintiff.  If you are interested in learning more about the case, please contact Jim Baker ([email protected]) at 619-814-4471.  If you email, please include your phone number.

Additionally, you can [Click here to join this action]. There is no cost or obligation to you.

About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]

SOURCE Johnson Fistel, LLP