NEW YORK, Jan. 09, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Bright Health Group, Inc. (NYSE: BHG) on behalf of long-term stockholders following a class action complaint that was filed against Bright Health on January 6, 2022 with a Class Period from June 21, 2021 to March 1, 2022. Our investigation concerns whether the board of directors of Bright Health have breached their fiduciary duties to the company.
The filed complaint alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) Bright Health had overstated its post-IPO business and financial prospects; (ii) the Company was ill-equipped to handle the impact of COVID-19-related costs; (iii) the Company was experiencing a decline in premium revenue because of a failure to capture risk adjustment on newly added lives; (iv) all the foregoing was reasonably likely to have a material negative impact on Bright Health's business and financial condition; and (v) as a result, the Offering Documents and Defendants' public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein. On November 11, 2021, Bright Health reported its third quarter 2021 results. Among other results, Bright Health reported earnings per share of -$0.48 as calculated under U.S. generally accepted accounting principles, missing consensus estimates by $0.31. Bright Health also reported a sharp rise in in the Company's medical cost ratio ("MCR"), advising investors that its MCR "for the third quarter of 2021 was 103.0%, which includes a 540 basis point unfavorable impact from COVID-19 related costs and a 900 basis point unfavorable impact primarily from a cumulative reduction in premium revenue due to an inability to capture risk adjustment on newly added lives." On this news, Bright Health's stock price fell $2.36 per share, or 32.33%, to close at $4.94 per share on November 11, 2021. As of the time this Complaint was filed, the price of Bright Health common stock continues to trade below the $18.00 per share Offering price, damaging investors.
If you are a long-term stockholder of Bright Health, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
