SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Central District of California on behalf of purchasers of Ontrak, Inc. (NASDAQ:OTRK) securities between November 5, 2020 and February 26, 2021, inclusive (the “Class Period”). The case is captioned Farhar v. Ontrak, Inc., No. 21-cv-01987, and is assigned to Judge Fernando L. Aenlle-Rocha. The Ontrak class action lawsuit charges Ontrak and certain of its executives with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Ontrak securities during the Class Period to seek appointment as lead plaintiff in the Ontrak class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Ontrak class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Ontrak class action lawsuit. An investor’s ability to share in any potential future recovery of the Ontrak class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Ontrak class action lawsuit or have questions concerning your rights regarding the Ontrak class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at malbert@rgrdlaw.com. Lead plaintiff motions for the Ontrak class action lawsuit must be filed with the court no later than May 3, 2021.
Ontrak is a healthcare company that offers a Predict-Recommend-Engage platform that organizes and automates healthcare data integration and analytics. A critical component of this platform are Ontrak programs, which are designed to provide healthcare solutions to members with behavioral conditions that cause or exacerbate chronic medical conditions.
The Ontrak class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Ontrak’s largest customer evaluated Ontrak on a provider basis, valuing Ontrak’s performance based on achieving the lowest cost per medical visit rather than clinical outcomes or medical cost savings; (ii) as a result, Ontrak’s largest customer did not find Ontrak’s program to be effective and was reasonably likely to terminate its contract with Ontrak; (iii) because this customer accounted for a significant portion of Ontrak’s revenue, the loss of the customer would have an outsized impact on Ontrak’s financial results; and (iv) as a result of the foregoing, defendants’ positive statements about Ontrak’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 1, 2021, Ontrak revealed that its largest customer had terminated its contract with Ontrak, effective June 26, 2021. Ontrak stated that this customer “evaluated Ontrak on a provider basis” and “[a]s such, the customer evaluated [Ontrak’s] performance based on [its] ability to achieve the lowest possible cost per medical visit, and not on [its] clinical outcomes data or medical cost savings.” Ontrak also stated that “the coaching model which Ontrak has pioneered for over a decade was seen by the customer to be less relevant to their performance metrics.” On this news, Ontrak’s share price fell by more than 46%, damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
