MONSEY, N.Y., Feb. 07, 2023 (GLOBE NEWSWIRE) -- The law firm of Wohl & Fruchter LLP is investigating whether Progyny, Inc. (Nasdaq: PGNY) (“Progyny”) has violated federal securities laws based on a new report by Spruce Point Capital Management alleging improper revenue recognition policies.
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https://wohlfruchter.com/cases/progyny/
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Why is there an investigation?
On February 7, 2023, Spruce Point Capital Management (“Spruce Point”) published a report alleging that “a lever that PGNY may be using to accelerate revenue recognition is unbilled accounts receivable and corresponding unbilled revenues,” and that by “adjusting revenues for changes in unbilled A/R, PGNY would have missed revenue expectations on six occasions and in all three quarters in 2022.”
The Spruce Point report cites a 2019 academic study by the Academy of Accounting and Financial Studies Journal that concluded that “unbilled receivables may lead either to earnings management or accounting fraud,” and that stakeholders should “carefully observe unbilled receivables.”
The Spruce Point report also alleges that “PGNY has historically understated client churn.”
The Spruce Point report follows the publication of a report by Jehoshaphat Research in December 2022 alleging that Progyny “is deceiving the investor community via its financial reporting practices.”
About Wohl & Fruchter
Wohl & Fruchter LLP, with offices in New York City and Monsey, has for over a decade been representing investors in litigation arising from fraud and other corporate misconduct, and recovered hundreds of millions of dollars in damages for investors. Please visit our website, www.wohlfruchter.com, to learn more about our Firm, or contact one of our partners.
Contact:
Wohl & Fruchter LLP
Joshua E. Fruchter
Toll Free 866.833.6245
alerts@wohlfruchter.com
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