NEW YORK, April 22, 2024 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:
- Do you, or did you, own shares of agilon health, inc. (NYSE: AGL)?
- Did you purchase your shares pursuant and/or traceable to the Company’s April 2021 IPO, or between April 15, 2021 and February 27, 2024, inclusive?
- Did you lose money in your investment in agilon health, inc.?
- Do you want to discuss your rights?
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 that purchased or otherwise acquired agilon health, inc. (“agilon” or the “Company”) (NYSE: AGL) common stock between April 15, 2021 and February 27, 2024, both dates inclusive (the “Class Period”), including purchases traceable to the Company’s April 2021 initial public offering (the “IPO”). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 (the “Complaint”).
If you purchased or acquired agilon common stock, and/or would like to discuss your legal rights and options please visit agilon health, inc. Shareholder Class Action Lawsuit or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
If you wish to serve as lead plaintiff, you must move the Court no later than May 20, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
According to the Complaint, throughout the Class Period, Defendants misled investors about agilon’s medical costs by failing to disclose that: (i) agilon’s business model, purportedly focused on patient care rather than fee-for-service, was unable to provide the cost savings and the mitigation of medical expenses represented to investors; (ii) agilon’s purported historical cost savings portrayed to investors in connection with the IPO were short-term effects of the COVID-19 pandemic and not indicative of the cost controls and incentives ostensibly inherent in agilon’s business model; (iii) as a result of the above, agilon suffered from a material, undisclosed risk of higher utilization and medical claims rates once the short-term effects of the COVID-19 pandemic waned and the providers in agilon’s network were poised to experience an upsurge in patient demand for medical services materially above the historical rate portrayed in the IPO offering documents; (iv) agilon suffered from materially higher utilization and medical claims rates throughout the Class Period as compared to prior year periods as patients who had delayed elective procedures and otherwise utilizing medical benefits during the COVID-19 pandemic sought treatment; (v) agilon’s business model, purportedly focused on patient care rather than fee-for-service, had not insulated agilon from these adverse cost trends as claimed by defendants, and agilon was in fact suffering cost trends that were up to 3x higher in key areas like specialist costs, outpatient surgeries, and Part B drugs as compared to 2022; (vi) these material, adverse cost trends were not moderating, but in fact worsening as agilon progressed through the year; (vii) agilon had suffered tens of millions of dollars in excess costs related to patient supplemental benefits and over $60 million in excess costs related to agilon’s core medical services that had not been disclosed to investors; (viii) agilon had suffered tens of millions of dollars in prior year development claims that had not been revealed to investors; (ix) agilon’s historical medical margins and adjusted EBITDA had been artificially inflated and materially misrepresented to investors; and (x) agilon’s 2023 medical margin and adjusted EBITDA guidance, its 2024 cash flow guidance, and its 2026 long-term guidance was not achievable and lacked a reasonable basis in fact.
On January 5, 2024, agilon surprised investors by lowering its 2023 profit forecasts for the second time in three months. Specifically, agilon reduced its 2023 Medical Margin and Adjusted EBITDA outlooks by more than $110 million and $73 million, respectively. Agilon also announced that its Chief Financial Officer, Timothy Bensley, would retire and be replaced later in the year.
Then, on February 27, 2024, agilon disclosed that its 2023 medical margin had in fact come in at just $299 million for the year – far lower than the range of $340 million to $360 million provided just a few weeks prior. agilon also revealed: (i) an additional $38 million in net costs from the fourth quarter and $13 million in costs attributable to prior periods; (ii) a $263 million net loss for 2023 and a negative $95 million adjusted EBITDA for the year – a far cry from the “meaningful step up in profitability” to a potential $90 million adjusted EBITDA gain originally claimed by defendants during the Class Period; and (iii) agilon slashed its 2024 medical margin guidance by 27% at the midpoint to a range of $400 million to $450 million and its 2024 adjusted EBITDA guidance from a $40 million to $60 million gain to a $15 million to $60 million loss.
On this news, agilon’s common stock price fell, damaging investors.
If you purchased or acquired agilon common stock, and/or would like to discuss your legal rights and options please visit agilon health, inc. Shareholder Class Action Lawsuit or contact Investor Relations Manager Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
ATTORNEY ADVERTISING. © 2024 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Investor Relations Manager
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
