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Johnson Fistel, LLP Files Class Action Suit Against GoodRx (GDRX)

·4 min read

SAN DIEGO, Dec. 20, 2020 /PRNewswire/ -- Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of shareholders of GoodRx Holdings, Inc. (NASDAQ: GDRX) Class A common stock. The class action is on behalf of shareholders who purchased GoodRx between September 23, 2020 and November 16, 2020, both dates inclusive (the "Class Period"). If you wish to serve as lead plaintiff in this class action, you must move the Court no later than February 16, 2021.

[Click here to join this action]

The GoodRx class action lawsuit charges GoodRx and certain of its officers and directors with violations of the Securities Exchange Act of 1934. GoodRx provides consumers with free information and tools that allow them to compare prices and save on their prescription drug purchases. The Company provides its users with these services via apps and websites that display prices and discounts at local and mail-order pharmacies for both insured and uninsured Americans.

On August 28, 2020, GoodRx filed with the SEC a Form S-1 Registration Statement (the "Registration Statement") for its initial public offering ("IPO"), which was declared effective by the SEC on September 22, 2020. On September 24, 2020, GoodRx filed with the SEC its Prospectus for the IPO offering to sell to the public over 23.4 million Class A shares by the Company (excluding the underwriters' option to purchase an additional 5.2 million common shares) and 11.2 million common shares by certain selling stockholders. On September 25, 2020, GoodRx closed its IPO. In the offering, the Company and certain existing stockholders sold over 39.8 million common shares for $33 per share, including the full exercise of the underwriters' option, generating over $1.3 billion in gross offering proceeds.

The complaint alleges that, at the time of the IPO, unbeknownst to investors, Amazon.com, Inc. ("Amazon") was developing and would soon introduce its own online and mobile prescription medication ordering and fulfillment service that would directly compete with GoodRx. Defendants timed the IPO so that it was priced before Amazon announced its online pharmaceutical business to facilitate the IPO and create artificial demand for the common shares sold therein to maximize the amount of money the Company and the selling stockholders could raise in the IPO. Given defendants' knowledge of Amazon's intention to enter the online pharmaceutical business, their statements in the Registration Statement and during the Class Period about GoodRx's competitive position were materially false and misleading when made and caused GoodRx Class A common stock to trade at artificially inflated prices of more than $64 per share during the Class Period.

Then on November 17, 2020, just weeks after GoodRx completed its IPO, Amazon announced two new pharmacy offerings, a Prime Rx plan and a discount card program, which, among other things, would compete directly with GoodRx's platform by making it "simple for customers to compare prices and purchase medications for home delivery, all in one place." In response to this news, the price of GoodRx Class A common stock declined 23%, from $46.72 per share to $36.21 per share by market close on November 17, 2020.

A lead plaintiff will act on behalf of all other class members in directing the GoodRx class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the GoodRx class-action lawsuit. An investor's ability to share any potential future recovery of the GoodRx class action lawsuit is not dependent upon serving as lead plaintiff. If you are interested in learning more about the case, please contact Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If you email, please include your phone number.

Additionally, you can [Click here to join this action]. There is no cost or obligation to you.

About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com

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View original content:http://www.prnewswire.com/news-releases/johnson-fistel-llp-files-class-action-suit-against-goodrx-gdrx-301196429.html

SOURCE Johnson Fistel, LLP