Progenity (PROG) Investor Settlement
Progenity ($PROG) has agreed to settle $1 million with investors to resolve claims that it misled them about overbilling issues and financial risks ahead of its IPO.
In 2020, Progenity was accused of overstating revenues and failing to disclose a $49 million government settlement tied to overbilling. By August, the company reported weak financials and $PROG dropped 50%. Following this, Progenity faced a lawsuit from investors.
June 22, 2020 – Progenity held its IPO, selling 6.6 million shares and generating over $100 million in gross proceeds.
July–August 2020 – Progenity announced a $49 million proposed settlement to resolve government investigations into overbilling. As part of this, it set aside $10.3 million to refund government health programs for overbilling.
August 14, 2020 – Following this news, $PROG declined nearly 50%.
October 27, 2020 – Investors filed a lawsuit, alleging Progenity misled them about financial risks and overbilling issues.
September 19, 2024 – Progenity finalized a $1 million settlement with investors.
Progenity launched its IPO in June 2020, raising over $100 million. At the time, the company claimed it was well-positioned for growth through its core genetic testing business.
However, at that point, Progenity had already agreed in principle to a $49 million settlement with the government over improper billing and illegal marketing practices.
Specifically, the company had billed government healthcare programs using incorrect codes and waived patient copays to boost test volumes—actions that violated federal laws.
Progenity continued these practices until February 2020, when it abruptly ended its discount program amid mounting regulatory pressure.
Internally, the company had also identified that it had likely received substantial overpayments for its Preparent tests and later confirmed a $10.3 million charge for expected refunds.
By August 2020, Progenity reported weak revenues and test volumes, revealing a declining trend that had started before the IPO but was not disclosed to investors.
Following this news, $PROG plummeted nearly 50%.
On October 27, 2020, investors filed a lawsuit against Progenity.
Progenity ($PROG) has agreed to settle $49 million with investors to resolve claims that it misled them about overbilling issues and financial risks ahead of its IPO.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons and entities that purchased or otherwise acquired the common stock of Progenity, pursuant and/or traceable to Progenity’s initial public offering Registration Statement and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.21 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.84 per share.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.