LOS ANGELES--(BUSINESS WIRE)--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 GoodRx Holdings, Inc. (“GoodRx” or the “Company”) (NASDAQ: GDRX) common stock between September 23, 2020, and November 8, 2022, inclusive (the “Class Period”). GoodRx investors have until June 21, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On May 9, 2022, after the market closed, GoodRx announced its first quarter 2022 financial results and withdrew its fiscal 2022 guidance. In its shareholder letter, the Company stated that “a grocery chain had taken actions that impacted acceptance of discounts from most PBMs for a subset of drugs.” The Company expects “the grocer issue . . . could have an estimated revenue impact of roughly $30 million [and] will be ongoing without amelioration through Q2.” As a result, GoodRx “believe[s] it is unlikely [it] will be able to achieve the FY 2022 guidance” previously provided.
On this news, GoodRx’s stock price fell $2.78, or 25.9%, to close at $7.97 on May 10, 2022, thereby injuring investors.
Then, on November 8, 2022, GoodRx disclosed 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.
On this news, GoodRx’s stock price fell $1.18, or 22.5%, to close at $4.06 per share on November 9, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, 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) 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; and (3) 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.
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If you purchased GoodRx common stock during the Class Period, you may move the Court no later than June 21, 2024 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 GoodRx common stock, 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, 2121 Avenue of the Stars, Suite 800, 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.
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