GlobeNewswire Inc | Oct 5, 2020 12:00PM EDT

October 05, 2020

LOS ANGELES, Oct. 05, 2020 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (GPM) reminds investors of the upcomingOctober 27, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Progenity, Inc. (Progenity or the Company) (NASDAQ: PROG) common stock pursuant and/or traceable to the Registration Statement issued in connection with the Companys initial public offering (IPO) conducted in June 2020.

If you suffered a loss on your Progenity investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/progenity-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

In June 2020, Progenity completed its IPO, in which it approximately 6.7 million shares for $15.00 per share.

On August 13, 2020, Progenity announced its second quarter 2020 results in a press release. Therein, the Company disclosed that second-quarter revenues reflected a $10.3 million accrual for refunds to government payors, related to a settlement with the U.S. Department of Justice and several states to resolve claims that Progenity had fraudulently billed federal healthcare programs for prenatal tests and provided kickbacks to physicians to induce them to order Progenity tests for their patients.

On this news, the Companys share price fell $1.24, or 14%, to close at $7.71 per share on August 14, 2020.

The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) 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; (2) 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 (3) that Progenity was suffering from accelerating negative trends in the second quarter of 2020 with respect to the Companys testing volumes, revenues and product pricing.

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If you purchased or otherwise acquired Progenity common stock, you may move the Court no later than October 27,2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish tolearn moreabout this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

ContactsGlancy Prongay and Murray LLP, Los AngelesCharles Linehan, 310-201-9150 or 888-773-9224www.glancylaw.com shareholders@glancylaw.com