SAN FRANCISCO, Sept. 28, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges GoHealth, Inc. (NASDAQ: GOCO) investors to contact the firm now. A securities class action related to GoHealth’s initial public offering has been filed and certain investors may have valuable claims.
GoHealth (GOCO) Securities Class Action:
The complaint alleges that GoHealth’s IPO offering documents contained materially false and misleading statements and omissions. Specifically, the offering documents allegedly misrepresented or failed to disclose that: (1) the Medicare insurance industry was undergoing a period of elevated customer churn that began in the first half of 2020; (2) GoHealth’s unique business model and its limited carrier base exposed the company to a higher risk of churn; (3) GoHealth suffered from degradations in customer retention as a result of elevated churn; (4) GoHealth had already entered into materially less favorable revenue sharing arrangements with its external sales agents; and, (5) GoHealth internally projected these adverse trends would continue and worsen after its IPO.
The IPO offering documents allowed GoHealth to go public, issuing 43.5 million shares to investors at $21 per share for total proceeds of about $913.5 million.
However, since the IPO, GoHealth has reported disappointing financial performance resulting from the material facts omitted in the IPO offering documents and its common stock has suffered significant price declines. By Sept. 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 in the IPO less than two months previously.
“We’re focused on investors’ losses and proving GoHealth’s IPO offering documents misrepresented or omitted churn data when going public,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a GoHealth investor or may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding GoHealth should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GOCO@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895