This News Digest Brought to You by
BUNDL
BY ERIN FLYNN JAY
Rosen Law Firm, The Schall Law Firm, and two other national shareholder rights litigation firms, each announced an investigation of potential securities claims on behalf of shareholders of Progyny, Inc., the largest fertility employer benefit company (NASDAQ: PGNY).
The litigators cite a competitor-informed report by unknown authors that alleges that Progyny “is deceiving the investor community via its financial reporting practices”.
On December 7, 2022, Jehoshaphat Research published a short report addressing Progyny, entitled “A Love Child of Accounting Games & Credit Risk. The Jehoshaphat Report alleges that Progyny “is deceiving the investor community via its financial reporting practices” and that Progyny “is actually unprofitable but masks this problem with accounting games.” Among other items, the report alleges that Progyny recently stopped accruing allowances for customer cancellations.
According to the report, an employee of KindBody, a competitor of Progyny, talked to the Jehosaphat Research Group. We asked KindBody to comment on who that was and what their relationship with Jehosaphat is. Gina Bartasi, Chair, replied in an email: “We do not know who spoke with Jehosaphat. We won't be weighing in on this report.”
Six investment banks, including KeyBanc Capital and JP Morgan Securities provide analysis on Progyny. None of them have issued short reports on the company.
Rosen Law, Schall Law, and the two other law firms are investigating claims on behalf of investors of Progyny, Inc. (NASDAQ: PGNY) for violations of securities laws. The Rosen Law Firm is preparing a class action seeking recovery of investor losses. Rosen has ranked in the top four of securities class action firms nationwide each year since 2013 by ISS Securities Class Action Services. This ranking is based on the volume of settlements.
David Sable, a former practicing fertility specialist who now manages a life sciences fund, said “occasionally these types of lawsuits are substantive and unearth malfeasance. Often, they are reverse-pump and dump schemes that cause brief movements in the stock if the firm (already having sold the stock short) can cover the short sale and make a profit.
“There is a well-oiled suing machine on Wall Street that responds to sudden stock drops by filing class action suits — they race to the courthouse to be first to file. The outcomes rarely benefit the shareholders; company boards sometimes pay a ‘settlement’ to make the nuisance suits go away,” he added.
When reached by phone, Laurence Rosen of Rosen Law Firm said he does not comment on litigation.
Jehoshaphat Research is operating anonymously, according to their website.
Neither Progyny nor Jehoshaphat Research responded to requests for comment.
The themes reported in this publication are those of of the news. They do not reflect the views of Inside Reproductive Health, nor of the Advertiser
IVF Ready Patients in Your Area
Most patients come to BUNDL because they don’t have insurance, or their insurance doesn’t adequately cover IVF or other fertility treatments. See how BUNDL reduces financial risk for patients at no fee to the practice.
They may even have patients in your area who are financially eligible but have not yet found a fertility provider. Contact BUNDL to see if they have IVF-ready patients in your area.
All external links active as of 12/14/22.
External links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Fertility Bridge or Inside Reproductive Health of any of the products, services or opinions of the corporation or organization or individual. Neither Fertility Bridge nor Inside Reproductive Health bears responsibility for the accuracy, legality or content of the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.