San Diego, CA -- (SBWire) -- 01/25/2022 --An investor, who purchased shares of Bright Health Group, Inc. (NYSE: BHG), filed a lawsuit over alleged violations of Federal Securities Laws by Bright Health Group, Inc..
Investors who purchased shares of Bright Health Group, Inc. (NYSE: BHG) have certain options and for certain investors are short and strict deadlines running. Deadline: March 7, 2022 . NYSE: BHG investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
Minneapolis, MN based Bright Health Group, Inc., an integrated care delivery company, engages in the delivery and financing of health insurance plans in the United States.
On May 19, 2021, Bright Health Group, Inc. filed a registration statement on Form S-1 with the SEC in connection with its initial public offering ("IPO"), which, after several amendments, was declared effective by the SEC on June 23, 2021 (the "Registration Statement").
On June 25, 2021, Bright Health Group, Inc. filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the "Prospectus" and, together with the Registration Statement, the "Offering Documents").
Pursuant to the Offering Documents, Bright Health Group, Inc. conducted the IPO, selling approximately 51 million shares of its common stock to the public at the Offering price of $18.00 per share, for approximate proceeds of $887 million to the Company after applicable underwriting discounts and commissions, and before expenses.
Then on November 11, 2021, Bright Health Group, Inc. reported its third quarter 2021 results. Among other results, Bright Health Group, Inc. reported earnings per share of -$0.48 as calculated under U.S. generally accepted accounting principles, missing consensus estimates by $0.31. Bright Health Group, Inc. 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."
The plaintiff claims 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.
The plaintiff alleges that between June 24, 2021 and November 10, 2021, the Defendants made false and/or misleading statements and/or failed to disclose that Bright Health had overstated its post-IPO business and financial prospects, that the Company was ill-equipped to handle the impact of COVID-19-related costs, that the Company was experiencing a decline in premium revenue because of a failure to capture risk adjustment on newly added lives, that all the foregoing was reasonably likely to have a material negative impact on Bright Health's business and financial condition, and that as a result, the Offering Documents and Defendants' public statements between June 24, 2021 and November 10, 2021were materially false and/or misleading and failed to state information required to be stated therein.
Those who purchased shares of Bright Health Group, Inc. (NYSE: BHG) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
Bright Health Group, Inc. (NYSE:BHG) Investor Notice: Lawsuit Alleges Misleading Statements
A lawsuit was filed on behalf of investors in Bright Health Group, Inc. (NYSE:BHG) shares over alleged securities laws violations.