OSCR Investor News: Robbins LLP is Investigating Oscar Health, Inc. (OSCR) on Behalf of Shareholders

SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP is investigating Oscar Health, Inc. (NYSE: OSCR) and its officers and directors to determine whether the breached fiduciary duties and violated securities laws in connection with the Company's March 2021 initial public offering ("IPO"). Oscar Health is a health insurance company that claims to be the first company "built around a full stack technology platform."

If you would like more information about our investigation of Oscar Health, Inc.'s misconduct, click here.

What is this Case About: According to the complaint filed against Oscar, the Company sold its Class A common stock at $39.00 per share, and received approximately $1.3 billion in net proceeds in its IPO. The Registration Statement filed in connection with the IPO was materially false and misleading. Specifically, it omitted to state that Oscar was experiencing growing COVID-19 testing and treatment costs as well as growing net COVID-19 costs. Further, Oscar would be negatively impacted by an unfavorable prior year Risk Adjustment Data Validation (RADV) result relating to 2019 and 2020, and was on track to be negatively impacted by significant Special Enrollment Period (SEP) membership growth.

On November 10, 2021, Oscar disclosed that its third quarter 2021 Medical Loss Ration increased 920 basis points year-over-year, to 99.7%. The Company claimed that the MLR increase was “primarily driven by higher net COVID costs as compared to the net benefit in 3Q20, an unfavorable prior year Risk Adjustment Data Validation (RADV) result, and the impact of significant SEP membership growth.” The Company 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, Scott Blackley, the Company’s Chief Financial Officer, 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’s share price fell $4.05 per share, or 24.5%, to close at 12.47 per share on November 11, 2021. By the commencement of this action, Oscar stock has traded as low as $5.76 per share, a more than 85% decline from the $39.00 per share IPO price.

Next Steps: If you acquired shares of Oscar Health, Inc. (OSCR) pursuant to the Company's March 2021 IPO, you have legal options. Contact Robbins LLP for more information.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas
[phone]
[e-mail]
Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Oscar Health, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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