Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Southern District of New York on behalf of shareholders of LifeStance Health Group, Inc. (NasdaqGS: LFST), if they purchased or acquired the Company’s Class A common stock pursuant and/or traceable to the Company’s June 2021 initial public offering (the “IPO”).
LifeStance 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) the Company’s out-patient/virtual revenue growth was negatively affected by a decrease in virtual visits after COVID-19 lockdowns were lifted; (ii) an increasing number of in-person visits post-lockdown resulted in substantial increases to operating expenses; (iii) its physician retention rate had fallen significantly below the 87% highlighted in the IPO’s registration statement leading to additional costs to bring on new physicians, who were less productive than the outgoing physicians they were replacing; and (iv) as a result, LifeStance Health’s business metrics and financial prospects were not as strong as the IPO’s registration statement represented.
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 October 11, 2022 to request that the court appoint them lead plaintiff.