SAN FRANCISCO, Oct. 05, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges Progyny, Inc. (NASDAQ: PGNY) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.
On September 19, 2024, analysts at JMP Securities reportedly downgraded Progyny to Market Perform from Outperform based on the company’s loss of a significant client and elevated attrition concerns.
The analyst downgrade came a day after Progyny revealed that one of its major clients had elected to exercise a 90-day option to terminate its services agreement with the company, effective as of January 1, 2025. This news sent the price of its shares crashing nearly 33% over a single trading day.
“PGNY has enjoyed retention rates approaching 100% for several years, so the loss of PGNY’s largest client causes us to appropriately contemplate the potential for lower retention rates going forward,” JMP Securities reportedly said.
JMP Securities reported that the client, which represents ~670K members as of June 30, consisted of 12% and 13% of the revenue for the half year, and full year periods, respectively.
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Investigation Into Progyny (PGNY):
The recent disclosures at Progyny, a benefits management company that specializes in fertility and family building benefits solutions, has prompted Hagens Berman to open an investigation into potential violations of the U.S. securities laws.
Media outlets have identified the client in question as Amazon, who reportedly purchases fertility benefits such as in vitro fertilization and egg freezing for its employees. According to Stat, starting Jan. 1, 2025, Amazon will use Maven as its fertility benefits vendor – a firm that Amazon reportedly already had a relationship with for virtual “family-building care.”
“We are investigating whether a dispute existed between Progeny and the client, or if Progeny management knew of customer satisfaction or quality of service or outcome issues,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Progyny and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Progyny investigation, read more »
Whistleblowers: Persons with non-public information regarding Progyny should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email PGNY@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
