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N NEW YORK, NY / ACCESSWIRE / February 13, 2021 / Pomerantz LLP announces that a class action lawsuit has been filed against GoodRx Holdings, Inc. ("GoodRx" or the "Company") (NASDAQ:GDRX) and certain of its officers. The class action, filed ... Pomerantz LLP
N NEW YORK, NY / ACCESSWIRE / February 13, 2021 / Pomerantz LLP announces that a class action lawsuit has been filed against GoodRx Holdings, Inc. ("GoodRx" or the "Company") (NASDAQ:GDRX) and certain of its officers. The class action, filed in United States District Court for the Central District of California, and docketed under 21-cv-00175, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise, acquired GoodRx securities between September 23, 2020 and November 16, 2020, inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased GoodRx securities during the Class Period, you have until February 16, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
GoodRx purports to provide consumers with free information and tools that allow them to compare prices and save on their prescription drug purchases. The Company purports to provide 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.
At the time of the Company's September 2020 initial public offering ("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, as well to maximize the amount of money the Company and the selling stockholders could raise in the IPO.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company's business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and failed to disclose to investors that: (i) Defendants were aware that Amazon had been in the process of developing and would soon introduce its own online and mobile prescription medication ordering and fulfillment service, and timed the IPO so that it was priced before Amazon announced its online pharmaceutical business; (ii) accordingly, Defendants timed the IPO to create artificial demand for the common shares sold therein; (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
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."
That same day, CNBC.com reported that Amazon Prime members would now have access to discounts of up to 80% on generic medications and up to 40% on brand-name prescriptions through its relationship with the Inside Rx savings program. This competitive pricing posed a severe threat to GoodRx's business model.
On this news, the price of GoodRx common stock fell $10.51 per share, or 23%, to close at $36.21 per share on November 17, erasing more than $4 billion of the Company's market capitalization on extremely heavy trading volume of over 23 million shares traded.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP
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