February 4, 2021 - An amended complaint was filed.

August 28, 2020 - An investor in shares of Progenity, Inc. (NASDAQ: PROG) filed a lawsuit in the U.S. District Court for the Southern District of California over alleged violations of Federal Securities Laws by Progenity, Inc. in connection with certain allegedly false and misleading statements made in connection with Progenity’s June 2020 initial public offering ( IPO ).

San Diego, CA based Progenity, Inc., a biotechnology company, provides complex molecular and specialized testing services to physicians, clinicians, and their patients in the United States.

Progenity, Inc. reported that its annual Total Revenue rose from $127.97 million in 2018 to $143.98 million in 2019, and that its Net Loss increased from $129.10 million in 2018 to $148.03 million in 2019. 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. However, since the IPO, Progenity stock declined to as low as $7.71 per share on August 14, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of Progenity, Inc. (NASDAQ: PROG) common shares, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that 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 plaintiff alleges that 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, 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, 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 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.