Sign In  |  Register  |  About San Anselmo  |  Contact Us

San Anselmo, CA
September 01, 2020 1:33pm
7-Day Forecast | Traffic
  • Search Hotels in San Anselmo

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Labaton Keller Sucharow LLP Announces Securities Class Action Lawsuit Filed Against agilon health, inc. and Related Parties

Labaton Keller Sucharow LLP (“Labaton”) announces that, on March 19, 2024, it filed a securities class action lawsuit (the “Complaint”) on behalf of its client the New England Teamsters Pension Fund (“New England Teamsters”) against agilon health, inc. (“agilon” or the “Company”) (NYSE: AGL) and related parties (collectively, “Defendants”). The action, which is captioned New England Teamsters Pension Fund v. agilon health, inc., No. 24-cv-00297 (W.D. Tex.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired agilon common stock between January 9, 2023 and January 4, 2024, inclusive (the “Class Period”). The action also asserts claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the “Securities Act”) on behalf of all persons and entities that purchased or otherwise acquired agilon common stock pursuant, or traceable, or both, to materials issued in connection with the Company’s secondary public offering (the “SPO Materials”) that occurred on or about May 16, 2023.

agilon, headquartered in Austin, Texas, generates profits from reducing medical expenditures. By partnering primarily with Medicare Advantage (“MA”) plans as well as traditional Medicare and commercial managed care organizations, agilon receives a fixed monthly payment from payers for each patient under its care. In return, agilon takes on the responsibility of managing the total cost and quality of care for those patients. This model incentivizes agilon and its contracted physician partners to focus on preventive care and improve health outcomes in order to control costs. If the total cost of caring for patients is less than the fixed payments agilon receives, it realizes a profit. However, if costs exceed the payments, agilon incurs a loss.

The Complaint alleges that, throughout the Class Period and in the SPO Materials, Defendants misled investors about agilon’s medical costs by: (1) touting the Company’s purported visibility into utilization trends and medical costs; (2) failing to disclose increased medical costs that agilon had incurred prior to and during the Class Period due to higher utilization of healthcare by MA patients; (3) falsely stating that its accounting reserves for higher-than-expected medical costs were adequate; (4) making false and misleading statements about the effectiveness of its business model; (5) issuing overly optimistic financial guidance; and (6) issuing risk disclosures that were materially false and misleading because they characterized adverse facts that had already materialized as mere possibilities.

The truth about the higher medical costs that agilon had been facing began to emerge on November 2, 2023. On that date, agilon reported lower-than-expected third quarter 2023 results due to increased utilization and medical costs. Defendants also lowered the Company’s 2023 full-year revenue outlook and informed investors that agilon had increased its accounting reserve for prior period medical expenses. On this news, agilon’s stock price fell $2.23, or 13.2 percent, to close at $14.66 on November 3, 2023.

Then, on January 5, 2024, agilon surprised investors again by lowering its 2023 profit forecasts. agilon also announced that its Chief Financial Officer, Timothy Bensley would retire and be replaced later in the year. On this news, agilon’s stock fell $3.45, or 28.6 percent, to close at $8.63 on January 5, 2024.

If you purchased or acquired agilon common stock during the Class Period or pursuant and/or traceable to the SPO Materials and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed no later than May 20, 2024. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.

If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton, at (212) 907-0650, or via email at fmcconville@labaton.com. You can view a copy of the complaint online here.

New England Teamsters is represented by Labaton, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $3.5 trillion. Labaton’s litigation reputation is built on its half-century of securities litigation experience, more than sixty full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton is available at labaton.com.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanAnselmo.com & California Media Partners, LLC. All rights reserved.