Holzer & Holzer, LLC announces that a class action lawsuit has been filed on behalf of investors who purchased GoHealth, Inc. (“GoHealth” or the “Company”) (NASDAQ: GOCO) securities in connection with the Company’s July 2020 IPO.
The complaint alleges defendants negligently prepared the registration statement and/or failed to disclose that: (1) the Medicare insurance industry was undergoing a period of elevated churn, which had begun in the first half of 2020; (2) GoHealth suffered from a higher risk of customer churn as a result of its unique business model and limited carrier base; (3) 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; (4) GoHealth had entered into materially less favorable revenue sharing arrangements with its external sales agents; and (5) these adverse financial and operational trends were internally projected by GoHealth to continue and worsen following the IPO.
If you purchased shares of GoHealth securities in connection with the Company’s July 2020 IPO and suffered significant losses on that investment, you are encouraged to contact Marshall P. Dees, Esq. at mdees@holzerlaw.com or Luke R. Kennedy, Esq. at lkennedy@holzerlaw.com , or through www.holzerlaw.com to discuss your legal rights.
Holzer & Holzer, LLC is an Atlanta, Georgia law firm that dedicates its practice to vigorous representation of shareholders and investors in litigation nationwide, including shareholder class action and derivative litigation. Since its founding in 2000, Holzer & Holzer attorneys have played critical roles in recovering hundreds of millions of dollars for shareholders victimized by fraud and other corporate misconduct. More information about the firm is available through its website, www.holzerlaw.com and upon request from the firm. Holzer & Holzer, LLC has paid for the dissemination of this promotional communication, and Corey D. Holzer is the attorney responsible for its content.
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Corey D. Holzer, Esq.
(888) 508-6832 (toll-free)
cholzer@holzerlaw.com