Shareholder Alert: Robbins LLP Reminds Investors that Bright Health Group, Inc. (BHG) is Being Sued for Misleading Shareholders
SAN DIEGO–(BUSINESS WIRE)–$BHG #IPO–Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Bright Health Group, Inc. (NYSE: BHG) common stock pursuant to or traceable to the Company’s June 2021 initial public offering (“IPO”) or between June 24, 2021 and November 10, 2021. Bright Health is an integrated care delivery company that engages in the delivery and financing of health insurance plans in the U.S.
If you suffered a loss due to Bright Health Group, Inc.’s misconduct, click here.
Bright Health Group, Inc. (BHG) Issued a Misleading Registration Statement in Connection with its IPO
According to the complaint, Bright Health filed its registration statement with the U.S. Securities and Exchange Commission in connection with its IPO on May 19, 2021, which was declared effective on June 23, 2021. Bright Health filed its Prospectus in connection with the IPO on June 25, 2021. These Offering Documents failed to disclose several factors that were reasonably likely to have a material negative impact on Bright Health’s business and financial condition. Specifically, Bright Health failed to disclose that it had overstated its post-IPO business and financial prospects, was ill-equipped to handle the impact of COVID-19-related costs, and was experiencing a decline in premium revenue because of a failure to capture risk adjustment on newly added lives.
On November 11, 2021, Bright Health reported its third quarter 2021 results, reporting earnings per share as -$0.48 and missing consensus estimates by $0.31. The Company also reported a sharp rise in its 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 $2.36 per share, or over 32%, to close at $4.94 per share on November 11, 2021.
If you purchased shares of Bright Health Group, Inc. (BHG) pursuant to the Company’s June 2021 IPO, or between June 24, 2021 and November 10, 2021, you have until March 7, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
[email protected]
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Bright Health Group, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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Contacts
Aaron Dumas
Robbins LLP
5040 Shoreham Place
San Diego, CA 92122
[email protected]
(800) 350-6003
www.robbinsllp.com
