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Investor Alert (NYSE: AGL): Kessler Topaz Meltzer & Check, LLP Files a Securities Fraud Class Action Lawsuit Against agilon health, inc. With Expanded Class Period and Encourages Investors With Substantial Losses to Contact the FirmThe law firm of Kessler Topaz Meltzer & Check, LLP informs investors that today the firm has filed a securities fraud class action lawsuit against agilon health, inc. (NYSE: AGL) ("agilon" or the "Company") on behalf of investors who purchased or acquired agilon common stock between November 4, 2022, and January 4, 2024, inclusive (the "Class Period"). This action, captioned Hope v. agilon health, inc., et al., Case No. 1:24-cv-00305, is filed in the United States District Court for the Western District Texas. Important Deadline Reminder: There is one related class action case pending against agilon in the United States District Court for the Western District of Texas. That first-filed action issued a notice of its filing pursuant to the federal securities laws which triggered the deadline of May 20, 2024, for any investors who purchased agilon common stock to seek to be appointed as a lead plaintiff representative of the class. The filing of the Hope Action does not change the May 20, 2024, lead plaintiff deadline. CLICK HERE TO SUBMIT YOUR AGILON LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/agilon-health-inc?utm_source=PR&utm_medium=link&utm_campaign=agl&mktm=r LEAD PLAINTIFF DEADLINE: MAY 20, 2024 CLASS PERIOD: NOVEMBER 4, 2022, THROUGH JANUARY 4, 2024
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DEFENDANTS' MISCONDUCT
The Class Period begins on November 4, 2022, when agilon announced its financial results for the third quarter of 2022 (filed after the market closed the prior evening). In connection with these results, Defendant Sell (agilon's CEO) emphasized the Company's "[m]embership, revenue and medical margins were above the high end of our guidance ranges" and indicated that, "[t]his year, we are driving substantial growth in medical margin PMPM [per member per month]." Defendant Bensley (agilon's CFO) stated that, "[f]or the full year 2022, we have raised our membership, revenue and medical margin outlook to reflect the strong performance in our [Medicare Advantage] business." Throughout the Class Period, Defendants repeatedly touted the strength of agilon's medical margin. Additionally, Defendants downplayed the significant cost pressures on the Company's medical margin and profitability. For example, on June 7, 2023, just days before other health insurers such as UnitedHealth Group Inc. and Humana Inc. reported significant increases in medical costs, Defendant Bensley, speaking at an analyst-sponsored healthcare conference, reported that Defendants "expect this year to generate somewhere around $550 million of medical margin," noting that the Company has seen "steady progress on medical margin upwards." Investors began to learn the truth about the cost pressures impacting agilon's medical margin and profitability on November 2, 2023, when the Company announced its third quarter 2023 financial results after the market closed. Critically, agilon reported a net loss of $31 million for the third quarter of 2023 and slashed its fiscal year 2023 medical margin to a range between $455 million and $470 million. Defendant Sell also assured investors that agilon's more conservative approach to guidance "should reduce the risk of negative claims development next year." On this news, the price of agilon common stock declined $3.78 per share, or more than 22% over two trading-days, from a close of $16.89 per share on November 2, 2023, to close at $13.11 per share on November 6, 2023. After several additional disclosures in November 2023, investors more fully learned the truth about the cost pressures on agilon's medical margin and profitability before the market opened on January 5, 2024, when agilon updated its fiscal year 2023 financial results and provided its initial outlook for 2024. Critically, agilon further slashed its 2023 medical margin guidance more than $100 million, to a range between $340 million and $360 million, due to "higher-than-expected medical costs." This represented a decline of more than 34% from the $550 million in medical margin it had predicted. On the related investor guidance call, Defendant Sell acknowledged that agilon "failed to recognize these elevated cost trends" and had "a data and analytics gap that led to [the Company] being late in both recognizing the magnitude and source of the utilization shifts." Defendant Sell further indicated that the increased cost trends were expected to persist through 2024. Also on January 5, 2024, Defendant Bensley announced that he would retire in 2024. On this news, the price of agilon common stock plummeted $3.45 per share, or nearly 29%, from a close of $12.08 per share on January 4, 2024, to close at $8.63 per share on January 5, 2024.
WHAT CAN I DO?
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
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