Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the US District Court for the Central District of California entitled Farhar v Ontrak, Inc., et al. (Case # 2: 21-cv-01987) on behalf of any person or entity, between November 5, 2020 and February 26, 2021, including the securities of Ontrak, Inc. (“Ontrak” or the “Company”) ( NASDAQ: OTRK) or otherwise acquired (the “Class Period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have 60 days after such notification to appoint the court as the lead plaintiff in this lawsuit.
If you have suffered a loss on your Ontrak investments or would like to inquire about whether you may be able to make claims to recover your loss under federal securities laws, you can use your contact information at https://www.glancylaw.com/cases / submit ontrak-inc /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, or by email at Shareholder@glancylaw.com or on our website at www.glancylaw.com for more information about your rights.
On March 1, 2021, Ontrak released a press release announcing preliminary financial results for the fourth quarter and full year 2020. In it, the company stated that its largest customer had terminated its contract with Ontrak effective June 26, 2021. The company stated this to customer “rated Ontrak on a vendor basis” and “[a]That’s how the customer rated it [Ontrak’s] Performance is based on [its] Ability to get the lowest possible cost per doctor visit and no further [its] Clinical outcome data or medical cost savings. “The company also stated that” the coaching model that Ontrak has developed for over a decade has been viewed by customers as being less relevant to their performance metrics. “
In that news, the company’s share price fell $ 27.32, or more than 46%, to close at $ 31.62 per share on March 1, 2021, hurting investors.
The story goes on
The complaint filed in this class action alleges that throughout the collection period the defendants made materially false and / or misleading statements and did not disclose material adverse facts about the business, business and prospects of the company. Specifically, Defendants have failed to disclose to investors: (1) Ontrak’s largest customer rated the Company on a vendor basis and rated Ontrak’s performance based on lowest cost per medical visit rather than clinical outcomes or medical cost savings. (2) As a result, Ontrak’s largest customer found that the company’s program was ineffective and it was reasonably likely that it would terminate its contract with Ontrak. (3) that the loss of the customer would have an overwhelming impact on Ontrak’s financial results as that customer represented a significant portion of the company’s revenue; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and / or unfounded.
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If you purchased or otherwise acquired the Ontrak Securities during the Class Period, you may move the court no later than 60 days after such notice and request the court to appoint you as the lead plaintiff. You don’t need to take any action at this point to be a member of the class. You can keep an attorney of your choice or take no action and remain an absent member of the class. If you would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, email email@example.com, or visit our website at www.glancylaw.com. When inquiring by email, please include your postal address, telephone number and the number of shares purchased.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210303006067/de/
Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067