Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of Illinois on behalf of shareholders of GoHealth, Inc. if they purchased the Company’s Class A common stock issued in connection with its July 2020 initial public stock offering (the “IPO”).
GoHealth and certain of its executives are charged with failing to disclose material information in its IPO Registration Statement, violating federal securities laws.
The alleged false and misleading statements and omissions include, but are not limited to, that: (i) since the first half of 2020, the Medicare insurance industry was undergoing a period of elevated churn; (ii) the Company was exposed to a higher risk of customer churn due to its unique business model and limited carrier base; (iii) the Company suffered from degradations in customer persistency and retention as a result of elevated industry churn, vulnerabilities that arose from the Company’s concentrated carrier business model, and its efforts to expand into new geographies, develop new carrier partnerships and worsening product mix; (iv) the Company had entered into materially less favorable revenue sharing arrangements with its external sales agents; and (v) these adverse financial and operational trends were internally projected by GoHealth to continue and worsen following the IPO.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until November 20, 2020 to request that the court appoint them lead plaintiff.