NEW YORK, Jan. 27, 2022 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Bright Health Group, Inc. ("Bright Health", or the "Company") (NYSE: BHG) and one of its officers. The class action, filed in United States District Court for the Eastern District of New York, and docketed under 22-cv-00101, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired: (a) Bright Health common stock pursuant and/or traceable to the Offering Documents (defined below) issued in connection with the Company's initial public offering conducted on or about June 24, 2021 (the "IPO" or "Offering"); and/or (b) Bright Health securities between June 24, 2021 and November 10, 2021, both dates inclusive (the "Class Period"). Plaintiff pursues claims against the Defendants under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased (a) Bright Health common stock pursuant and or traceable to the Offering or IPO or (b) Bright Health securities during the class period, you have until March 7, 2022 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 newaction@pomlaw.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.
[Click here for information about joining the class action]
Bright Health is an integrated care delivery company that engages in the delivery and financing of health insurance plans in the U.S. The Company operates in two segments—NeueHealth and Bright HealthCare. Bright Health offers individual and family, Medicare, and employers insurance plans. The Company also operates 28 managed and affiliated risk-bearing primary care clinics.
On May 19, 2021, Bright Health filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after several amendments, was declared effective by the SEC on June 23, 2021 (the "Registration Statement").
On June 25, 2021, Bright Health filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the "Prospectus" and, together with the Registration Statement, the "Offering Documents").
Pursuant to the Offering Documents, Bright Health conducted the IPO, selling approximately 51 million shares of its common stock to the public at the Offering price of $18.00 per share, for approximate proceeds of $887 million to the Company after applicable underwriting discounts and commissions, and before expenses.
The complaint alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) Bright Health had overstated its post-IPO business and financial prospects; (ii) the Company was ill-equipped to handle the impact of COVID-19-related costs; (iii) the Company was experiencing a decline in premium revenue because of a failure to capture risk adjustment on newly added lives; (iv) all the foregoing was reasonably likely to have a material negative impact on Bright Health's business and financial condition; and (v) as a result, the Offering Documents and Defendants' public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
On November 11, 2021, Bright Health reported its 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, missing consensus estimates by $0.31. Bright Health also reported a sharp rise in in the Company's medical cost ratio ("MCR"), advising investors that its MCR "for the third quarter of 2021 was 103.0%, which includes a 540 basis point unfavorable impact from COVID-19 related costs and a 900 basis point unfavorable impact primarily from a cumulative reduction in premium revenue due to an inability to capture risk adjustment on newly added lives."
On this news, Bright Health's stock price fell $2.36 per share, or 32.33%, to close at $4.94 per share on November 11, 2021.
As of the time this Complaint was filed, the price of Bright Health common stock continues to trade below the $18.00 per share Offering price, damaging investors.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
