SAN FRANCISCO, CA / ACCESSWIRE / November 15, 2020 / Hagens Berman urges GoHealth, Inc. (NASDAQ: GOCO) investors to reach out to the company now. A class action lawsuit related to GoHealth’s initial public offering has been filed and GOCO investors may face sufficient losses to move for the lead plaintiff.
Classes: July 12, 2020 – September 21, 2020
Lead plaintiff deadline: November 20, 2020
Contact an attorney now: GOCO@hbsslaw.com
Class action lawsuit against GoHealth securities (GOCO):
The complaint alleges that GoHealth’s IPO offer documents contained materially false and misleading statements and omissions. In particular, the offering materials allegedly misrepresented or failed to disclose that: (1) the Medicare insurance industry was experiencing a period of high customer churn that began in the first half of 2020; (2) GoHealth’s unique business model and limited carrier base have placed the company at greater risk of churn. (3) GoHealth suffered from a deterioration in customer loyalty due to increased churn. (4) GoHealth had already made far more unfavorable agreements with its external sales staff on the distribution of income. and (5) GoHealth internally forecast that these adverse trends would continue and worsen after the IPO.
The IPO offering enabled GoHealth to go public and to issue 43.5 million shares to investors at a price of $ 21 per share for total proceeds of approximately $ 913.5 million.
However, since going public, GoHealth has reported disappointing financial performance, based on key facts not included in the IPO offering materials, and its common stock has suffered significant falls. Through September 15, 2020, GoHealth Class A common stock closed at just $ 12.53 per share, or over 40% below the $ 21 per share price investors paid for the stock less than two months earlier when it went public.
“We are focused on investor losses and are proving that GoHealth’s IPO offers documents that contain misrepresented or omitted churn data when it went public,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you’re a GoHealth investor or would like to assist with the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about GoHealth should review their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to GOCO@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities across the country and eighty attorneys. The firm represents investors, whistleblowers, employees and consumers in complex legal disputes. More information about the company and its achievements can be found at hbsslaw.com. For the latest news, visit our newsroom or follow us on Twitter @classactionlaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
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