Progenity Defeats Investor Class Suit Over Pre-IPO Statements

Progenity Inc. investors failed to adequately allege securities fraud in connection with the biotechnology company’s disclosures before its 2020 initial public offering, a federal court in California ruled.

Judge Ruth Bermudez Montenegro of the US District Court for the Southern District of California dismissed the proposed class action with finality Wednesday.

• Investors accused Progenity of improperly failing to disclose an imminent need to refund $10.3 million for overbilling government payors for tests to discover genetic disease-causing mutations
• They also challenged the omissions of negative trends in test volume, average selling price, and revenue
• The court previously dismissed the claims but ...