NEW YORK–()–Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a federal class action lawsuit against GoHealth, Inc. (“GoHealth” or the “Company”) (NASDAQ: GOCO), certain of its officers and directors, and the underwriters of the Company’s July 2020 initial public offering (“IPO”), alleging violations of federal securities laws. If you purchased GoHealth stock in or after the Company’s July 2020 Initial Public Offering (“IPO”) and have suffered a loss, realized or unrealized, you are encouraged to contact Scott+Scott attorney Joe Pettigrew at 844-818-6982 or for more information.

GoHealth provides an end-to-end health insurance marketplace that purportedly specializes in matching consumers with Medicare Advantage plans.

On or around July 15, 2020, GoHealth held its IPO at a price of $21 per share, raising nearly $914 million.

Since the IPO, the price of GoHealth Class A common stock has suffered significant price declines. By September 15, 2020, GoHealth Class A common stock closed at just $12.53 per share – over 40% below the $21 per share price investors paid for the stock in the IPO less than two months previously.

The lawsuit alleges that the IPO’s offering materials were false and misleading because they failed to disclose the following adverse facts: (a) the Medicare insurance industry had undergone a period of elevated churn in the first half of 2020 as a result of increased competition, the growth of direct-to-consumer insurance brokers, and the occurrence of a special enrollment period; (b) GoHealth suffered from a higher risk of customer churn as a result of its unique business model and limited carrier base; (c) GoHealth suffered from degradations in customer persistency and retention as a result of elevated industry churn, vulnerabilities that arose from the Company’s concentrated carrier business model, and GoHealth’s efforts to expand into new geographies, develop new carrier partnerships, and worsening product mix; (d) GoHealth had entered into agreements with its external sales agents that provided for a materially worse revenue sharing percentage as compared to historical arrangements (i.e., a 90% level in 2020 versus a relatively low level in 2019), which had substantially decreased the profits that could be generated in the Company’s Medicare External segment; and (e) these adverse financial and operational trends were internally projected by GoHealth to continue and worsen following the IPO.

What You Can Do

If you purchased GoHealth common stock and you have questions about this notice or wish to discuss this lawsuit, please contact attorney Joe Pettigrew at 844-818-6982, or, or visit the GoHealth case page on our website at The lead plaintiff deadline is November 20, 2020.

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.

Attorney Advertising

Source link

Author: admin