Progenity, Inc.

Soe v. Progenity, Inc., et al., No. 3:20-cv-01683 (S.D. Cal.)

On June 22, 2020, Progenity commenced its initial public offering (“IPO”) of over 6.6 million shares at $15.00 each, generating over $100 million in gross offering proceeds. Since the IPO, Progenity’s stock price has plummeted, closing as low as $7.71 per share on August 14, 2020, representing a decline of nearly 50% from the IPO price.

The lawsuit was filed in the U.S. District Court for the Southern District of California, and is captioned Soe v. Progenity, Inc., et al., No. 3:20-cv-01683. The suit alleges that the IPO materials were negligently prepared, and as a result, contained untrue statements of material fact and omitted material facts necessary to make the statements therein not misleading. Specifically, the suit alleges that the IPO materials failed to disclose that: (1) Progenity had overbilled government payors by $10.3 million in 2019 and 2020 and had therefore overstated its revenues, earnings, and cash flows from operations; (2) Progenity would need to refund this overpayment in the second quarter of 2020 (the same quarter in which the IPO was conducted; and (3) 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.

Lead Plaintiff deadline
October 27, 2020
class period
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