TMCnet News
Robbins LLP Is Investigating the Officers and Directors of GoHealth, Inc. (GOCO) on Behalf of ShareholdersShareholder rights law firm Robbins LLP announces that a class action complaint was filed against GoHealth, Inc. (NASDAQ: GOCO) on behalf of shareholders who acquired GoHealth, Inc. shares pursuant to the Company's July 15, 2020, initial public offering ("IPO"). GoHealth operates a health insurance marketplace. If you have suffered a loss due to GoHealth's misconduct, click here. GoHealth (GOCO) Accused of Misleading Shareholders In September 2019, private equity firm Centerbridge acquired GoHealth for $1.1 billion in equity and cash. According to the complaint, GoHealth reported tremendous growth immediately following the acquisition in preparation for going public, representing that its business model was highly profitable and offered the best lifetime vale of commissions per customer acquisition cost of any of its peers. GoHealth conducted its IPO on July 15, 2020, selling approximately 43.5 million shares for $21.00 per share raising nearly $914 million. However, the complaint alleges that GoHealth's IPO materials were negligently prepared and contained false and misleading statements. Specifically, GoHealth failed to disclose: (i) the Medicare insurance industry was undergoing a period of elevated churn, which had begun in the first half of 2020; (ii) GoHealth suffered from a higher risk of customer churn due to its unique business model; (iii) GoHealth could not retain its customers due to various external and internal factors; (iv) GoHealth had entered into materially less favorable revenue sharing arrangements with its external sales agents; and (v) GoHealth had projected these trends to continue and worsen following the IPO. By September 15, 2020, GoHealth closed at $12.53 per share - a more than 40% decline from its IPO price paid by investors just two months previously. If you purchased GoHealth, Inc. (GOCO), you have until November 20, 2020, to ask the court to appoint you lead plaintiff for the class. Contact us to learn more:
Lauren Levi
Robbins LLP is a nationally recognized leader in shareholder rights law. To be notified if a class action against GoHealth settles or to receive free alerts about companies engaged in wrongdoing, sign up for Stock Watch today. Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200922005948/en/ |
