SAN DIEGO--(BUSINESS WIRE)--Robbins LLP reminds investors that a shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired DocGo Inc. (NASDAQ: DCGO) securities between November 8, 2022 and September 17, 2023. DocGo offers mobile health and medical transportation services for various health care providers in the U.S. and the United Kingdom.
What is this Case About: DocGo Inc. (DCGO) Misled Investors Regarding the Efficacy of its Mobile Health and Medical Transportation Services
According to the complaint, in spring 2023, New York City Mayor Eric Adams awarded DocGo a no-bid $432 million contract to oversee the city's relocation of migrants outside of New York City's five boroughs (the “Relocation Contract”). The contract required DocGo to house migrants and provide them with services including case management, medical care, food, transportation, lodging, and round-the-clock security. DocGo’s $432 million contract nearly matches the Company’s total 2022 revenue of roughly $441 million.
The complaint alleges that beginning in July 2023, media began expressing concerns of DocGo's implementation of the Relocation Contract. The New York Times reported that asylum-seekers had complained of threats by local security guards hired by DocGo. The Albany Times Union reported that the New York Attorney General had opened an investigation into DocGo regarding its concerns of potential violations of state and federal laws in its handling of the Relocation Center.
According to the complaint, on September 6, 2023, New York City Comptroller Brad Lander announced that his office was declining to approve the Relocation Contract “due to numerous outstanding concerns” including “[i]nsufficient budget detail to justify over $432 million in contract value,” “[i]nconclusive reasoning as to the selection of the vendor and contradictory statements about their fiscal ability to provide contracted services,” “[i]nadequate vendor responsibility determination, contract oversight and subsequent questions about proper service delivery,” and “[i]nadequate information regarding the selection of subcontractors.” Mayor Adams proceeded over Comptroller Lander's objections. Finally, on September 18, 2023, Comptroller Lander announced that his office was commencing a real-time audit of operations and invoices incurred by DocGo in connection with the Relocation Contract due to “serious concerns about the selection of this vendor and its performance of contract duties.” After each of these media reports and announcements, the Company's stock declined.
What Now: Similarly situated shareholders may be eligible to participate in the class action against DocGo Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by December 26, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. 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. Since our inception, we have obtained over $1 billion for shareholders.
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