NEW YORK, March 20, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Western District of Texas on behalf of all persons and entities who purchased or otherwise acquired securities of (a) agilon health, inc. (“agilon” or the “Company”) (NYSE: AGL) common stock between January 9, 2023 and January 4, 2024, both dates inclusive (the “Class Period”); and/or (b) agilon common stock pursuant and/or traceable to the Company’s May 2023 secondary public offering (the “SPO”).
The Complaint alleges that, throughout the Class Period and in the SPO Materials, Defendants misled investors about agilon’s medical costs by: (i) touting the Company’s purported visibility into utilization trends and medical costs; (ii) 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; (iii) falsely stating that its accounting reserves for higher-than-expected medical costs were adequate; (iv) making false and misleading statements about the effectiveness of its business model; (v) issuing overly optimistic financial guidance; and (vi) issuing risk disclosures that were materially false and misleading because they characterized adverse facts that had already materialized as mere possibilities.
The truth about the higher medical costs that agilon had been facing began to emerge on November 2, 2023. On that date, agilon reported lower-than-expected third quarter 2023 results due to increased utilization and medical costs. Defendants also lowered the Company’s 2023 full-year revenue outlook and informed investors that agilon had increased its accounting reserve for prior period medical expenses. On this news, agilon’s stock price fell $2.23, or 13.2 percent, to close at $14.66 on November 3, 2023.
Then, on January 5, 2024, agilon surprised investors again by lowering its 2023 profit forecasts. agilon also announced that its Chief Financial Officer, Timothy Bensley would retire and be replaced later in the year. On this news, agilon’s stock fell $3.45, or 28.6 percent, to close at $8.63 on January 5, 2024.
Investors who purchased or otherwise acquired shares of agilon should contact the Firm prior to the May 20, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
