Investors with over $25,500 in losses are encouraged to contact the firm before May 3, 2021; click here to submit trade information
LOS ANGELES, April 28, 2021 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of Ontrak, Inc. (NASDAQ: OTRK) investors that acquired shares between November 5, 2020 and February 26, 2021. Investors have until May 3, 2021 to seek an active role in this litigation.
Investors are encouraged to contact attorney Lesley F. Portnoy, to determine eligibility to participate in this action, by phone 310-692-8883 or email, or click here to join the case.
It is alleged in this complaint that Ontrak failed to disclose that: (1) their largest customer evaluated Ontrak on a provider basis, valuing Ontrak’s performance based on achieving the lowest cost per medical visit instead of medical cost savings or clinical outcomes ; (2) Ontrak’s largest customer did not find their program to be effective and was reasonably likely to terminate its contract with Ontrak as a result; and (3) because this customer accounted for a significant portion of Ontrak’s revenue, losing this customer would have an outsized impact on Ontrak's financial results.
Ontrak announced its preliminary financial results for fourth quarter and full year 2020 on March 1, 2021 and shared that, effective June 26, 2021, its largest customer had terminated its contract with Ontrak. Apparently, "the customer evaluated [Ontrak's] performance based on [its] ability to achieve the lowest possible cost per medical visit, and not on [its] clinical outcomes data or medical cost savings, which were meaningful and significant." Further, "the coaching model which Ontrak has pioneered for over a decade was seen by the customer as less relevant to their performance metrics." Ontrak's share price fell $27.32, or more than 46% to close at $31.62 per share on March 2, 2021, on this news.
A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 3, 2021.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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