MONDAY DEADLINE: Investors in Bright Health Group, Inc. Suffering Substantial Losses Have Opportunity to File Class Action
SAN DIEGO, March 3, 2022 /PRNewswire/ — Robbins Geller Rudmann & Dowd LLP announces that purchasers of: (a) common stock of Bright Health Group, Inc. (NYSE: BHG) pursuant to the offering documents issued in Bright Health’s initial public offering made on or about June 24, 2021 (the “IPO”); and/or (b) securities of Bright Health between June 24, 2021 and November 10, 2021inclusive (the “Class Period”) have until the next Monday, March 7, 2022 to seek appointment as lead applicant in Mark c. Bright Health Group, Inc., no. 22-cv-00101 (EDNY). Started on January 6, 2022the Glowing Health The class action accuses Bright Health and some of its key officers and directors of violating the Securities Act of 1933 and/or the Securities Exchange Act of 1934.
If you have suffered substantial losses and wish to act as the lead plaintiff of the Glowing Health class action, please provide your information by clicking here. You can also contact attorney JC Sanchez of Robbins Geller by calling 800/449-4900 or by email at [email protected]. Principal Applicant’s Requests for Glowing Health the class action must be filed with the court no later than this next Monday, March 7, 2022.
CASE ALLEGATIONS: Bright Health is an integrated healthcare delivery company engaged in the delivery and funding of health insurance plans in the United States. As part of its IPO, Bright Health sold approximately 51 million shares of 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 discounts and underwriting fees, and before expenses. On or about June 24, 2021Bright Health common stock began trading on the New York Stock Exchange under the trading symbol BHG.
the Glowing Health class action alleges that the IPO offering documents were negligently prepared and, as a result, contained misrepresentations of material facts or failed to state other facts necessary for the statements made not to be misleading and have not been prepared in accordance with the rules and regulations governing their preparation. the Glowing Health The class action 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 business and financial prospects after the IPO; (ii) Bright Health was ill-equipped to manage the impact of costs related to COVID-19; (iii) Bright Health was experiencing declining premium turnover due to an inability to capture the risk adjustment on newly added lives; (iv) any of the foregoing was reasonably likely to have a material adverse impact on Bright Health’s business and financial condition; and (v) as a result, the IPO’s offering documents and the defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to provide the information that should be contained therein.
At November 11, 2021Bright Health reported third quarter 2021 results. Among other results, Bright Health reported earnings per share of $0.48 as calculated under U.S. generally accepted accounting principles, consensus estimates missing by $0.31. Bright Health also reported a sharp increase in Bright Health’s medical expense ratio (“MCR”), advising investors that its MCR “for the third quarter of 2021 was 103.0%, which includes an adverse impact of 540 basis points of COVID-19 related costs and an unfavorable impact of 900 basis points primarily due to a cumulative reduction in premium income due to an inability to capture the risk adjustment on newly added lives. At this news, Bright Health’s share price fell more than 32%, hurting investors.
From the moment the Glowing Health class action lawsuit has been filed, Bright Health’s common stock price continues to trade below the $18.00 offer price per share.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who has purchased: (a) common stock of Bright Health pursuant to and/or traceable to the offering documents issued in connection with Bright Health’s IPO; and/or (b) securities of Bright Health during the Class Period to seek appointment as lead plaintiff in the Glowing Health class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the Glowing Health class action. The main plaintiff can select a law firm of his choice to plead Glowing Health class action. An investor’s ability to participate in any potential future upturn in the Glowing Health the class action does not depend on the status of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller’s attorneys have secured many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Dry. Dispute. The 2020 ISS Securities Class Action Services Top 50 report ranked Robbins Geller first for his recovery $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiff company. Please visit http://www.rgrdlaw.com for more information.
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Robbins Geller Rudman & Dowd LLP
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JC Sanchez, 800-449-4900
SOURCE Robbins Geller Rudman & Dowd LLP