San Diego, CA -- (SBWIRE) -- 09/15/2020 -- An investor, who purchased shares of Progenity, Inc. (NASDAQ: PROG), filed a against Progenity, Inc. over alleged violations of Federal Securities Laws in connection with Progenity's June 2020 initial public offering ("IPO").

Investors who purchased shares of Progenity, Inc. (NASDAQ: PROG) have certain options and for certain investors are short and strict deadlines running. Deadline: October 27, 2020. NASDAQ: PROG investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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.

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.

Those who purchased shares of Progenity, Inc. (NASDAQ: PROG) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.