NEW YORK, Nov. 03, 2023 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired DocGo Inc. (“DocGo” or the “Company”) (NASDAQ: DCGO) securities during the period from November 8, 2022 through September 17, 2023, inclusive (the “Class Period”). Investors have until December 26, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On July 30, 2023, the New York Times reported a rocky start to DocGo’s migrant relocation efforts in New York City. The article reported that asylum-seekers have complained of threats and broken promises after New York City awarded DocGo the Relocation Contract. DocGo’s $432 million contract nearly matches the Company’s total 2022 revenue of roughly $441 million. On this news, the price of DocGo shares declined by $0.36, or approximately 4.11%, from $8.75 per share to close at $8.39 on July 31, 2023.
On August 22, 2023, the Albany Times Union reported that the New York Attorney General (“NYAG”) opened an investigation into DocGo and cautioned the Company to cease limiting migrants’ speech or movement. Specifically, the NYAG Civil Rights Bureau sent a letter to DocGo’s attorneys detailing serious concerns it had regarding potential violations of state and federal laws in its handling of the Relocation Contract. Then, on September 6, 2023, New York City Comptroller Brad Lander announced that his office was declining to approve the Relocation Contract. Mayor Adams had the authority to proceed with the Relocation Contract over Comptroller Lander’s objections and ultimately did so. On this news, the price of DocGo shares declined by $0.61 per share, or approximately 7.48%, from $8.16 per share to close at $7.55 on September 6, 2023.
On September 14, 2023, the Albany Times Union published an article reporting that Anthony Capone, DocGo’s Chief Executive Officer, had falsified portions of his professional biography regarding his educational history. Then, on September 15, 2023, DocGo disclosed Capone’s resignation as Chief Executive Officer in a filing with the U.S. Securities and Exchange Commission. On this news, the price of DocGo shares declined by $0.76 per share, or approximately 11.76%, from $6.46 per share to close at $5.70 on September 15, 2023.
Then, on September 18, 2023, Comptroller Lander announced that his office was commencing a real-time audit of operations and invoices incurred by DocGo in connection with the Relocation Contract. Specifically, Comptroller Lander noted that his office has serious concerns about the selection of DocGo as a vendor and the Company’s performance of contract duties. On this news, the price of DocGo shares declined by $0.41 per share, or 7.19%, from $5.70 per share to close at $5.29 on September 18, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) DocGo’s executive hiring processes were inadequate to fully review and vet the professional and academic backgrounds of job candidates; (ii) the foregoing increased the likelihood of disruptive executive turnover; (iii) contrary to its representations to investors, DocGo had overstated the efficacy of its mobile health and medical transportation services, the very services contemplated by the Relocation Contract; and (iv) all of the foregoing, once revealed, was likely to subject DocGo to significant reputational and/or regulatory scrutiny that would negatively impact the Company’s financial position and/or prospects.
If you purchased or otherwise acquired DocGo securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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