Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Bright Health Group, Inc. (BHG) Investors

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Bright Health Group, Inc. (“Bright Health” or the “Company”) (NYSE: BHG): (a) common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s June 2021 initial public offering (“IPO” or the “Offering”); (b) and/or securities between June 24, 2021 and November 10, 2021, inclusive (the “Class Period”). Bright Health investors have until March 7, 2022 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

In June 2021, Bright Health completed its IPO, selling approximately 51 million shares of common stock for $18.00 per share.

On November 11, 2021, Bright Health reported its third quarter financial results, revealing earnings per share (“EPS”) of -$0.48 as calculated under U.S. generally accepted accounting principles (“GAAP”), missing consensus estimates by $0.31. The Company also reported a sharp rise in the Company’s medical cost ratio (“MCR”), advising investors that its MCR “for the third quarter of 2021 was 103.0%, including 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 fell $2.36, or 32%, to close at $4.94 per share on November 11, 2021, significantly below the IPO price.

The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Bright Health had overstated its post-IPO business and financial prospects; (2) the Company was ill-equipped to handle the impact of COVID-19-related costs; (3) the Company was experiencing a decline in premium revenue because of a failure to capture risk adjustment on newly added lives; (4) all the foregoing was reasonably likely to have a material negative impact on Bright Health's business and financial condition; and (5) as a result, Defendants' positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased Bright Health securities during the Class Period, you may move the Court no later than March 7, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Bright Health securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Bright Health Group, Inc. (BHG) Investors

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.