BENSALEM, Pa., Oct. 5, 2020 /PRNewswire/ — Law Offices of Howard G. Smith reminds investors of the upcoming November 20, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased GoHealth, Inc. (“GoHealth” or the “Company”) (NASDAQ: GOCO) common stock pursuant and/or traceable to the Company’s July 2020 initial public offering (the “IPO” or “Offering”).
In July 2020, GoHealth sold approximately 43.5 million shares of stock in its initial public stock offering (the “IPO”), at $21.00 per share raising almost $914 million in new capital.
Then, on August 19, 2020, in its first quarterly earnings report following the IPO, GoHealth announced that it incurred a net loss of $22.9 million after posting net income of $15.3 million in the prior-year period.
On this news, GoHealth’s stock price fell $1.99 per share, or 10%, to close at $17.03 per share on August 20, 2020, thereby injuring investors.
On September 15, 2020, GoHealth’s stock price closed at $12.53, a 40% decline from its IPO price.
The complaint alleges that Defendants made materially false and/or misleading statements and/or failed to disclose that at the time of the IPO: (1) the Medicare insurance industry was undergoing a period of elevated churn, which had begun in the first half of 2020; (2) GoHealth suffered from a higher risk of customer churn due to its unique business model and limited carrier base; (3) 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 its efforts to expand into new geographies, develop new carrier partnerships and worsening product mix; (4) GoHealth had entered into materially less favorable revenue sharing arrangements with its external sales agents; and (5) these adverse financial and operational trends were internally projected by GoHealth to continue and worsen following the IPO.
If you purchased GoHealth common stock, you may move the Court no later than November 20, 2020 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE Law Offices of Howard G. Smith