San Francisco, Calif .– (Newsfile Corp. – Nov 12, 2020) – Hagens Berman urges GoHealth, Inc. (NASDAQ: GOCO) investors to reach out to the company now. A class action lawsuit related to GoHealth's initial public offering has been filed and certain investors may have valuable claims.
Classes: July 12, 2020 – September 21, 2020
Lead plaintiff deadline: November 20, 2020
Contact an attorney now: GOCO@hbsslaw.com
Class action lawsuit against GoHealth securities (GOCO):
The complaint alleges that GoHealth's IPO offer documents contained materially false and misleading statements and omissions. In particular, the offering materials allegedly misrepresented or failed to disclose that: (1) the Medicare insurance industry was experiencing a period of high customer churn that began in the first half of 2020; (2) GoHealth's unique business model and limited carrier base have placed the company at greater risk of churn. (3) GoHealth suffered from a deterioration in customer loyalty due to increased churn. (4) GoHealth had already made far more unfavorable agreements on the distribution of income with its external sales agents. and (5) GoHealth internally forecast that these adverse trends would continue and worsen after the IPO.
The IPO offering enabled GoHealth to go public and to issue 43.5 million shares to investors at a price of $ 21 per share for total proceeds of approximately $ 913.5 million.
However, since going public, GoHealth has reported disappointing financial performance, based on key facts not included in the IPO offering materials, and its common stock has suffered significant falls. Through September 15, 2020, GoHealth Class A common stock closed at just $ 12.53 per share, or over 40% below the price of $ 21 per share that investors paid for the stock less than two months earlier when it went public.
"We're focusing on investor losses and proving that GoHealth's IPO offers documents that contain misrepresented or omitted churn data when it went public," said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you're a GoHealth investor or would like to assist with the company's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about GoHealth should review their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to GOCO@hbsslaw.com.
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The source version of this press release can be found at https://www.newsfilecorp.com/release/68129