SAN FRANCISCO, Feb. 24, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Bright Health Group, Inc. (NYSE: BHG) investors with significant losses to submit your losses now.
Class Period: June 21, 2021 – Nov. 10, 2021
Lead Plaintiff Deadline: Mar. 7, 2022
Visit: www.hbsslaw.com/investor-fraud/BHG
Contact An Attorney Now: BHG@hbsslaw.com
844-916-0895
Bright Health Group, Inc. (BHG) Securities Class Action:
The complaint alleges that Bright Health, senior executives and other responsible parties made false and misleading statements during and after the company’s June 2021 initial public offering about the adaptability of the company’s so-called “alignment” business model to continue to deliver improved medical cost ratios (“MCR”), a key metric dependent on capturing certain premium revenues.
Specifically, Defendants misrepresented and failed to disclose that Bright Health (1) overstated the company’s post-IPO financial prospects in its offering documents, (2) was ill-equipped to handle the impact of COVID-19-related costs, (3) was experiencing a decline in premium revenues because of a failure to capture risk adjustment on newly added lives, and (4) all of the foregoing was reasonably likely to have a material negative impact on Bright Health’s business and financial condition.
The truth emerged on Nov. 11, 2021, when Bright Health reported a whopping Q3 2021 $296.7 million net loss, or roughly $237.5 million higher than the prior year’s period, and blamed the results on a sharp increase in its MCR, COVID-19, and reduced premium revenues due to an inability to capture risk adjustment on newly added lives.
This news drove the price of Bright Health shares 32% lower to close at $4.94 on Nov. 11, 2021, and over 70% below the company’s $18/share IPO price.
“We’re focused on investors’ losses and proving the defendants misled investors about the adaptability of Bright Health’s business model in the face of the COVID-19 pandemic,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Bright Health, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Bright Health 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 BHG@hbsslaw.com .
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
