NEW YORK, Jan. 13, 2022 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Bright Health Group, Inc. (“Bright Health” or the “Company”) (NYSE: BHG) either in connection with the Company’s June 24, 2021 IPO or between June 24, 2021 and November 10, 2021, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Eastern District of New York and alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
If you purchased or otherwise acquired Bright Health common stock, and/or would like to discuss your legal rights and options, please visit Bright Health Group, Inc. Shareholder Class Action Lawsuit or contact Lisa Sriken toll free at (877) 779-1414 or lsriken@bernlieb.com.
Bright Health is an integrated care delivery company that engages in the delivery and financing of health insurance plans in the U.S. The Company offers individual and family, Medicare, and employer insurance plans.
According to the complaint, the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) Bright Health had overstated its post-IPO business and financial prospects; (ii) the Company was ill-equipped to handle the impact of COVID-19-related costs; (iii) the Company was experiencing a decline in premium revenue because of a failure relating to risk adjustment; (iv) all the foregoing was reasonably likely to have a material negative impact on Bright Health's business and financial condition; and (v) as a result, the Offering Documents and Defendants' public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
On November 11, 2021, Bright Health reported its third quarter 2021 results. Among other results, Bright Health reported earnings per share of -$0.48 as calculated under U.S. generally accepted accounting principles, missing consensus estimates by $0.31. Bright Health also reported a sharp rise in in the Company's medical cost ratio ("MCR"), advising investors that its MCR "for the third quarter of 2021 was 103.0%, which includes a 540 basis point unfavorable impact from COVID-19 related costs and a 900 basis point unfavorable impact primarily from a cumulative reduction in premium revenue due to an inability to capture risk adjustment on newly added lives."
On this news, Bright Health's stock price fell $2.36 per share, or 32.33%, to close at $4.94 per share on November 11, 2021. As of the time the Complaint was filed, the price of Bright Health common stock trades below the $18.00 per share Offering price.
If you wish to serve as lead plaintiff, you must move the Court no later than March 7, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or otherwise acquired Bright Health common stock, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/brighthealthgroupinc-bhg-shareholder-lawsuit-class-action-fraud-stock-475/ or contact Lisa Sriken toll free at (877) 779-1414 or lsriken@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information:
Lisa Sriken
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
lsriken@bernlieb.com
