Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Southern District of Ohio on behalf of shareholders of Root, Inc. who purchased shares between October 28, 2020 and March 8, 2021.
Root and certain of its executives are charged with failing to disclose material information in its IPO Registration Statement and Prospectus and/or during the Class Period, violating federal securities laws.
On March 9, 2021, multiple investor news resources reported that Bank of America Securities analyst Joshua Shanker initiated coverage of the Company with an “Underperform” rating concluding that it is unlikely to be cash flow positive until 2027, and that established market players would continue to impede the Company’s profitability with superior telematics data and dominant market positions.
On this news, shares of Root fell $0.18 per share, or 1.46%, to close at $12.17 per share on March 9, 2021, representing a total decline of 54.93% from the Offering price.
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 May 18, 2021 to request that the court appoint them lead plaintiff.