NEW YORK, May 07, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired GoodRX Holdings, Inc. (“GoodRX” or the “Company”) (NASDAW: GDRX) securities during the period of September 23, 2020 through November 8, 2022, inclusive (“the Class Period”). Investors have until June 21, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On May 9, 2022, GoodRx revealed that, late in the first quarter of 2022, an unnamed “grocery chain had taken actions that impacted acceptance of discounts from most PBMs for a subset of drugs” and that this “impacted the acceptance of many PBM discounts for certain drugs at this grocer’s stores.” GoodRx acknowledged that this disruption “could have an estimated revenue impact of roughly $30 million” in the second quarter of 2022, resulting in the Company announcing disappointing second quarter 2022 revenue guidance of only about $190 million. Analysts and media outlets quickly recognized that the unnamed grocery chain was Kroger. On this news, the price of GoodRx shares declined by $2.78 per share, or approximately 25%, from a $10.75 per share on May 9, 2022 to close at $7.97 per share on May 10, 2022.
On November 8, 2022, GoodRx provided further information on the severity of the revenue impact from the Kroger disruption, with the Company estimating that the “impact of the grocer issue on third quarter [prescription transactions revenue] was approximately $40” million and that the Company expected “a combined $45 million to $50 million estimated impact to prescription transactions revenue” for the fourth quarter of 2022. GoodRx further acknowledged that the Company was seeking to enter into contractual relationships with pharmacies to prevent similar disruptions from occurring in the future. On this news, the price of GoodRx shares declined an additional $1.18 per share, or approximately 22%, from $5.24 per share on November 8, 2022, to close at $4.06 per share on November 9, 2022.
The lawsuit alleges that GoodRx made false statements and/or concealed that: (1) while Kroger accounted for less than 5% of the pharmacies accepting GoodRx discounts, Kroger was responsible for nearly 25% of GoodRx's total prescription transactions revenue (the Company's primary revenue stream); and (2) Kroger could unilaterally cease accepting GoodRx discounts, cutting off some or all of GoodRx's revenues for purchases at Kroger’s pharmacies.
If you purchased or otherwise acquired GoodRx securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
