Did you lose money on investments in Oscar Health? If so, please visit Oscar Health, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected] to discuss your rights.
NEW YORK, May 14, 2022 (GLOBE NEWSWIRE) — Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or otherwise acquired the common stock of Oscar Health, Inc. (“Oscar” or the “Company”) OSCR pursuant to and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s March 2021 initial public offering (“IPO” or the “Offering”). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Exchange Act of 1933.
Oscar is a health insurance company that claimed to be the first such company “built around a full stack technology platform” which will “allow [Oscar] to continue to innovate like a technology company and not a traditional insurer.”
In March 2021, Oscar conducted its IPO, selling 36,391,946 shares of Class A common stock at a price of $39.00 per share. The Company received net proceeds of approximately $1.3 billion from the Offering which were purportedly to be used to repay in full outstanding borrowings, including fees and expenses, under Oscar’s Term Loan Facility ($167 million), and the remainder proceeds were to be used for general corporate purposes.
Plaintiff alleges that Defendants’ statements in the Registration Statement were materially false and misleading when made because: (1) Oscar was experiencing growing COVID-19 testing and treatment costs; (2) Oscar was experiencing growing net COVID costs; (3) Oscar would be negatively impacted by an unfavorable prior year Risk Adjustment Data Validation…