SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of: (a) Bright Health Group, Inc. (NYSE: BHG) common stock pursuant and/or traceable to the offering documents issued in connection with Bright Health’s initial public offering conducted on or about June 24, 2021 (the “IPO”); and/or (b) Bright Health securities between June 24, 2021 and November 10, 2021, inclusive (the “Class Period”) have until March 7, 2022 to seek appointment as lead plaintiff in Marquez v. Bright Health Group, Inc., No. 22-cv-00101 (E.D.N.Y.). Commenced on January 6, 2022, the Bright Health class action lawsuit charges Bright Health and certain of its top executives and directors with violations of the Securities Act of 1933 and/or Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff of the Bright Health class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Bright Health class action lawsuit must be filed with the court no later than March 7, 2022.
CASE ALLEGATIONS: Bright Health is an integrated care delivery company that engages in the delivery and financing of health insurance plans in the Unites States. Through its IPO, Bright Health sold approximately 51 million shares of its common stock to the public at the offering price of $18.00 per share, for approximate proceeds of $887 million to Bright Health after applicable underwriting discounts and commissions, and before expenses. On or about June 24, 2021, Bright Health’s common stock began trading on the New York Stock Exchange under the trading symbol BHG.
The Bright Health class action lawsuit alleges that the IPO’s offering documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. The Bright Health class action lawsuit further alleges that the IPO’s offering documents and defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Bright Health had overstated its post-IPO business and financial prospects; (ii) Bright Health was ill-equipped to handle the impact of COVID-19-related costs; (iii) Bright Health was experiencing a decline in premium revenue because of a failure to capture risk adjustment on newly added lives; (iv) all the foregoing was reasonably likely to have a material negative impact on Bright Health’s business and financial condition; and (v) as a result, the IPO’s offering documents and defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
On November 11, 2021, Bright Health reported its third quarter 2021 results. Among other results, Bright Health reported earnings per share of $0.48 as calculated under United States Generally Accepted Accounting Principles, missing consensus estimates by $0.31. Bright Health also reported a sharp rise in Bright Health’s medical cost ratio (“MCR”), advising investors that its MCR “for the third quarter of 2021 was 103.0%, which includes 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 price fell by more than 32%, damaging investors.
As of the time the Bright Health class action lawsuit was filed, the price of Bright Health common stock continues to trade below the $18.00 per share offering price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased: (a) Bright Health common stock pursuant and/or traceable to the offering documents issued in connection with Bright Health’s IPO; and/or (b) Bright Health securities during the Class Period to seek appointment as lead plaintiff in the Bright Health class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Bright Health class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Bright Health class action lawsuit. An investor’s ability to share in any potential future recovery of the Bright Health class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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