Lawsuit for Investors in shares of Evolent Health, Inc. (EVH) announced by Shareholders Foundation

SAN DIEGO, CA / ACCESSWIRE / September 24, 2019 / The Shareholders Foundation, Inc. announces that a lawsuit is pending for certain investors in shares of Evolent Health, Inc. (NYSE:EVH).

Investors, who purchased shares of Evolent Health, Inc. (NYSE:EVH), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

By the end of 2018, Evolent Health, Inc had contractual relationships with over 35 operating partners. Many of these "partners" were either related parties, or companies in which Evolent had significant ownership or had provided financing at the onset of the relationship. Evolent's largest and most important partner was University Health Care, Inc., d/b/a Passport Health Plan, which represented 20% of the Company's revenues.

Then on May 29, 2019, Evolent Health, Inc announced that it was buying a controlling interest in Passport, which was essentially a bailout of the financially distressed health plan. Evolent Health, Inc acquired Passport despite previously stating that it had no intention of buying Passport or any other health plans for the foreseeable future, and that acquiring health plans was not part of its strategic focus. In addition, Evolent Health, Inc admitted that University Health Care, Inc., d/b/a Passport Health Plan was performing poorly and was not being run or managed properly, despite paying massive management fees to Evolent for what was previously understood by investors to be an aligned relationship.

The plaintiff claims that the defendants mispresented and failed to disclose that Evolent's partnership model did not align the Company's interests with those of its partners, as the model was designed to inflate the Company's revenue by extracting enormous administrative and management fees at the expense of its operating partners such as Passport, that Passport was struggling financially, particularly after Kentucky cut its reimbursement rates, and the partnership between Evolent and University Health Care, Inc., d/b/a Passport Health Plan was becoming increasingly unsustainable, that Evolent was draining Passport of functions, employees and money, to such an extent that University Health Care, Inc., d/b/a Passport Health Plan was left on the verge of insolvency, that University Health Care, Inc., d/b/a Passport Health Plan t was conducting a bidding process for several months to sell itself to prevent liquidation, and that as a result of the foregoing, Defendants' public statements were materially false and/or misleading and/or lacked a reasonable basis.

Those who purchased Evolent Health, Inc. (NYSE:EVH) shares should contact the Shareholders Foundation, Inc.

CONTACT:

Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.

SOURCE: Shareholders Foundation, Inc.