SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of Oscar Health, Inc. (NYSE: OSCR) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Oscar Health’s March 2021 initial public offering (“IPO”) have until July 11, 2022 to seek appointment as lead plaintiff in Carpenter v. Oscar Health, Inc., No. 22-cv-03885 (S.D.N.Y.). Commenced on May 12, 2022, the Oscar Health class action lawsuit charges Oscar Health, certain of its top executive officers and directors, as well as the IPO’s underwriters with violations of the Securities Act of 1933.
If you suffered substantial losses and wish to serve as lead plaintiff of the Oscar Health class action lawsuit, please provide your information here:
You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com. Lead plaintiff motions for the Oscar Health class action lawsuit must be filed with the court no later than July 11, 2022.
CASE ALLEGATIONS: Oscar Health is a health insurance company that claims to be the first such company “built around a full stack technology platform” which will “allow [Oscar Health] to continue to innovate like a technology company and not a traditional insurer.” In the IPO, Oscar Health sold 36,391,946 shares of Class A common stock at a price of $39.00 per share.
The Oscar Health class action lawsuit alleges that the IPO’s Registration Statement was materially false and misleading and omitted to state that: (i) Oscar Health was experiencing growing COVID-19 testing and treatment costs; (ii) Oscar Health was experiencing growing net COVID costs; (iii) Oscar Health would be negatively impacted by an unfavorable prior year Risk Adjustment Data Validation (“RADV”) result relating to 2019 and 2020; (iv) Oscar Health was on track to be negatively impacted by significant Special Enrollment Period (“SEP”) membership growth; and (v) as a result, defendants’ positive statements about Oscar Health’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 12, 2021, Oscar Health disclosed that its Medical Loss Ratio (“MLR”) for the second quarter of 2021 was 82.4%, an increase of 2170 basis points year-over year. Oscar Health claimed that “[t]he MLR increased to 82.4% in 2Q21 from 60.7% in 2Q20, primarily driven by meaningfully lower utilization in 2Q20 as a result of COVID-19, as well as higher COVID-19 testing and treatment costs and a return to more normalized utilization in 2Q21.” Oscar Health also disclosed that its net loss for the quarter was $73.1 million, an increase of $32.1 million year-over-year.
Then, on November 10, 2021, Oscar Health disclosed that its third quarter 2021 MLR increased 920 basis points year-over-year, to 99.7%, claiming the MLR increase was “primarily driven by higher net COVID costs as compared to the net benefit in 3Q20, an unfavorable prior year [RADV] result, and the impact of significant SEP membership growth.” Oscar Health also disclosed that its net loss for the quarter was $212.7 million, an increase of $133.6 million year-over-year. During a conference call held the same day, Oscar Health’s CFO, Scott Blackley, stated: “We recognized approximately $20 million of risk adjustment expense this quarter related to our risk adjustment data validation audit or RADV results. The RADV exercise is atypical this year due to COVID. It spans two years, 2019 and 2020. The majority of the RADV headwinds relate to the 2019 audit results, which were recently completed.” On this news, Oscar Health’s share price fell by more than 24.5%.
By the commencement of the Oscar Health class action lawsuit, Oscar Health stock has traded as low as $5.76 per share, a more than 85% decline from the IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any purchaser of Oscar Health Class A common stock pursuant and/or traceable to the Registration Statement issued in connection with the IPO to seek appointment as lead plaintiff in the Oscar Health 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 Oscar Health class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Oscar Health class action lawsuit. An investor’s ability to share in any potential future recovery of the Oscar Health class action lawsuit is not dependent upon serving as lead plaintiff.
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