SAN FRANCISCO, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Fertility benefits provider Progyny, Inc. (NASDAQ: PGNY) is under intense scrutiny following the unexpected announcement of a major client’s departure.
Shareholder rights firm Hagens Berman has launched a probe into the company's disclosures regarding its client retention rates. The firm urges Progyny 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.
Visit: www.hbsslaw.com/investor-fraud/pgny
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844-916-0895
Investigation Into Progyny (PGNY):
The investigation centers on Progyny’s repeated assertions of near-100% client retention, including at its recent Investor Day and earnings calls.
At its August 6, 2024 second quarter earnings call, CEO Pete Anevski emphatically stated, "In terms of renewals more broadly, activity thus far has been consistent with our typical rate of near 100% retention. We're also not seeing any clients looking to reduce their benefit for next year, reflecting the value they're continuing to see as we improve the efficiency of their overall health care spend while also helping their workforce realize their family building roles." (Emphasis added).
However, just weeks after management reiterated these claims, the company disclosed that a "significant client" had elected to terminate its services agreement effective January 1, 2025.
Media reports suggest that the departing client is Amazon, a major purchaser of fertility benefits for its employees. The tech giant is reportedly shifting its fertility benefits provider to Maven, a company with which it already had a relationship for virtual family-building care.
The discrepancy between Progyny’s recent public statements and the abrupt loss of a major client has raised questions about the company’s disclosures. Hagens Berman partner Reed Kathrein stated, “We are investigating whether Progeny management may have known of the impending loss of its most significant customer at the same time they were emphasizing its near 100% client retention rates.”
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
