NEW YORK, January 6, 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 of the Eastern District of New York, and registered as 22-cv-00101, is in the name of a class composed of all persons other than the Defendants who have purchased or otherwise acquired: (a) ordinary shares of Bright Health in accordance with and / or traceable to the Documents d ” Offer (defined below) issued as part of the Company’s initial public offering made on or about June 24, 2021 (the “IPO” or “Offer”); and / or (b) Bright Health titles between June 24, 2021 and November 10, 2021, both dates included (the “Recourse Period”). The plaintiff is pursuing actions 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 ordinary shares in accordance with and / or traceable to the Offer or the IPO
, or (b) Bright Health Titles during the Class Period, you have up to March 7, 2022 to ask the Court to appoint you as the principal 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 protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
Bright Health is an integrated healthcare delivery company engaged in the delivery and funding of health insurance plans in the United States. The Company operates in two segments: NeueHealth and Bright HealthCare. Bright Health offers individual and family, Medicare and employer insurance plans. The Company also operates 28 managed and affiliated primary care clinics at risk.
At May 19, 2021, Bright Health filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after several modifications, was declared effective by the SEC on June 23, 2021 (the “Declaration of Registration”).
At June 25, 2021, Bright Health has filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which has incorporated and forms part of the registration statement (the “Prospectus” and, along with the registration statement, the “offer documents”).
Pursuant to the offering documents, Bright Health proceeded to the IPO, selling approximately 51 million common shares to the public at the offering price of $ 18.00 per share, for an approximate product of $ 887 million to the Company after applicable discounts and subscription fees, and before expenses.
The complaint alleges that the offering documents were negligently prepared and, therefore, contained false statements of material fact or failed 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. In addition, throughout the Class Period, the Defendants have made materially false and misleading representations regarding the affairs, operations and compliance policies of the Company. Specifically, the offering documents and the defendants made false and / or misleading statements and / or failed to disclose that: (i) Bright Health overstated its business and financial outlook after the IPO; (ii) the Company was ill-equipped to manage the impact of costs related to COVID-19; (iii) the Company was experiencing a decline in premium income due to a failure to take into account the risk adjustment on newly added lives; (iv) all of the foregoing were reasonably likely to have a material adverse effect on the business and financial condition of Bright Health; and (v) accordingly, the Offer Documents and the public statements of the Defendants throughout the Class Period were materially false and / or misleading and did not indicate the information to be contained therein.
At November 11, 2021, Bright Health has released its third quarter 2021 results. Among other results, Bright Health reported earnings per share of –$ 0.48 as calculated in accordance with generally accepted accounting principles in the United States, the missing consensus estimates by $ 0.31. Bright Health also reported a sharp increase in the company’s medical cost ratio (“MCR”), informing investors that its MCR “for the third quarter of 2021 was 103.0%, which includes an unfavorable impact of 540. COVID-19 cost basis points. and an unfavorable impact of 900 basis points mainly stemming from a cumulative reduction in premium income due to an inability to capture the risk adjustment on new 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.
At the time of this complaint, the price of Bright Health common stock continues to trade below the $ 18.00 per share Offer price, harmful for investors.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is recognized as one of the leading firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class actions bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext 7980
SOURCE Pomerantz LLP