LEAD PLAINTIFF DEADLINE IS NOVEMBER 20, 2020
NEW YORK and CHICAGO, Oct. 5, 2020 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz LLP announces that it has filed a federal securities class action lawsuit against GoHealth, Inc. ("GoHealth" or the "Company") (NASDAQ: GOCO). The class action, filed in the United States District Court for the Northern District of Illinois, Eastern Division, and docketed under 1:20-cv-05765, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired GoHealth Class A common stock pursuant and/or traceable to the registration statement issued in connection with GoHealth's July 2020 initial public offering (the "IPO"). Wolf Haldenstein is seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act") against GoHealth, certain of GoHealth's officers and directors, and the private equity sponsor of the IPO and its affiliates.
All investors who purchased shares of GoHealth and incurred losses are urged to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses in the shares of against GoHealth., you may, no later than November 20, 2020, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the shares of GoHealth.
On June 19, 2020, GoHealth filed a registration statement with the United States Securities and Exchange Commission ("SEC") for the IPO on Form S-1 (the "Registration Statement"), which was used to sell to the investing public 43.5 million shares of GoHealth Class A common stock at $21 per share, for total gross proceeds of $913.5 million.
Our complaint alleges that the Offering Materials for the IPO were negligently prepared and, as a result, contained untrue statements of material fact, omitted material facts necessary to make the statements contained therein not misleading, and failed to make necessary disclosures required under the rules and regulations governing their preparation. Specifically, the Offering Materials failed to disclose that at the time of the IPO:
the Medicare insurance industry was undergoing a period of elevated churn, which had begun in the first half of 2020;
GoHealth suffered from a higher risk of customer churn as a result of its unique business model and limited carrier base;
GoHealth suffered from degradations in customer persistency and retention as a result of elevated industry churn, vulnerabilities that arose from the Company's concentrated carrier business model, and GoHealth's efforts to expand into new geographies, develop new carrier partnerships and worsening product mix;
GoHealth had entered into materially less favorable revenue sharing arrangements with its external sales agents; and
these adverse financial and operational trends were internally projected by GoHealth to continue and worsen following the IPO.
Since the July 2020 IPO, the price of GoHealth Class A common stock has suffered significant price declines. By September 15, 2020, GoHealth Class A common stock closed at just $12.53 per share – over 40% below the $21 per share price investors paid for the stock in the IPO nearly two months prior.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at firstname.lastname@example.org, or visit our website at www.whafh.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: email@example.com, firstname.lastname@example.org or email@example.com
Tel: (800) 575-0735 or (212) 545-4774
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SOURCE Wolf Haldenstein Adler Freeman & Herz LLP