Law Offices of Howard G. Smith reminds investors of the upcoming May 20, 2024 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased agilon health, inc. (“agilon” or the “Company”) (NYSE: AGL) common stock between January 9, 2023 and January 4, 2024, inclusive (the “Class Period”).
Investors suffering losses on their agilon investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at (215) 638-4847 or by email to howardsmith@howardsmithlaw.com.
On November 2, 2023, agilon released its third quarter 2023 financial results, reporting lower-than-expected numbers due to increased utilization and medical costs. Additionally, the Company lowered its full-year guidance, stating that it had increased its incurred-but-not-reported (“IBNR”) reserve to account for prior expenses.
On this news, agilon’s stock price fell $2.23, or 13.2%, to close at $14.66 per share on November 3, 2023, thereby injuring investors.
Then, on January 5, 2024, agilon lowered its 2023 Medical Margin outlook by approximately $110 million and its Adjusted EBITDA outlook by $73 million, citing higher-than-expected medical costs. Further, the Company announced the retirement of its Chief Financial Officer.
On this news, agilon’s stock price fell $3.45, or 28.6%, to close at $8.63 per share on January 5, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants misled investors about agilon’s medical costs by: (1) touting the Company’s purported visibility into utilization trends and medical costs; (2) failing to disclose increased medical costs that agilon had incurred prior to and during the Class Period due to higher utilization of healthcare by MA patients; (3) falsely stating that its IBNR Reserve was adequate; (4) making false and misleading statements about the effectiveness of its business model; (5) issuing overly optimistic financial guidance; and (6) issuing risk disclosures that were materially false and misleading because they characterized adverse facts that had already materialized as mere possibilities; and (7) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired agilon common stock during the Class Period, you may move the Court no later than May 20, 2024 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240329366698/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
