Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Root, Inc. (ROOT)
THE ANGEL, April 19, 2021 / PRNewswire / – Glancy Prongay & Murray LLP (“GPM”) reminds investors of the impending development May 18, 2021 Deadline for filing a lead plaintiff motion in the class action filed on behalf of investors who have purchased or otherwise acquired Root, Inc. (“Root” or the “Company”) (NASDAQ: ROOT): (a) Securities between October 28, 2020 and March 8, 2021including (the “Class Period”); and / or (b) Ordinary Class A Shares as set out in and / or traceable as set out in the Offer Documents in connection with the Company’s initial public offering on or at October 28, 2020 (the “IPO” or “Offering”).
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If you have suffered a loss on your root investment or would like to inquire about whether you may be able to make claims to recover your loss under federal securities laws, your contact information can be found at https://www.glancylaw.com/cases Submit / root-inc /. You can also contact Charles H. Linehan, from GPM at 310-201-9150, toll free at 888-773-9224, or email Shareholder@glancylaw.com to learn more about your rights.
On 1st December 2020Once launched, Root announced its financial results for the third quarter of 2020 and posted revenues of $ 50.5 million (or minus 36.6% compared to the previous year) and earnings per share (“EPS”) of –$ 2.20 per share (lack of consensus estimates of $ 1.79 per share).
In this news, the company’s stock fell $ 2.30or over 13% to close at $ 14.70 per share on December 2, 2020.
Then further February 25, 2021Post-market, Root announced its fourth quarter and full year 2020 financial results, reporting an EPS of –$ 0.72lack of consensus estimates of $ 0.07 per share.
In this news, the company’s stock fell $ 2.93or nearly 18% to close at $ 13.49 per share on February 26, 2021.
Then further March 9, 2021, BofA Securities Analyst Joshua Shanker initiated coverage of Root with an “underperform” rating on the assumption that the company is unlikely to generate positive cash flow by 2027 and noted that Root “does not need insignificant cash inflows from the capital markets to meet its cash flow needs “. The report stated that established market players would continue to hurt the company’s profitability with superior telematics data and their dominant positions in the market.
The story goes on
In the news, the share price fell $ 0.18 per share, or 1.46% to close on $ 12.17 per share on March 9, 2021This corresponds to a decrease of 55% compared to the IPO price.
The complaint filed alleges that during the entire classroom period the defendants made materially false and / or misleading statements and did not disclose material adverse facts about the business, operations and prospects of the company. In particular, the Offer Documents and Defendants have not notified investors that: (1) Root is unlikely to generate any positive cash flow for at least a few years after the IPO; (2) Accordingly, the company would likely require significant cash infusions to meet its cash flow needs. (3) Notwithstanding Defendants’ promotion of the allegedly unique, data-driven advantages of Root, several established industry colleagues of the Company actually had significant competitive advantages over Root, including in relation to telematics data and data binding; and (4) as a result, the public statements in the Offer Document and by Defendants were materially inaccurate and / or misleading throughout the teaching period and did not contain any information to be included therein.
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If you have purchased or otherwise acquired root securities during the class period and / or Class A common stock following the IPO, you will be able to move no later than the court May 18, 2021, to seek lead plaintiff in this alleged class action lawsuit. To be a member of the class action, you do not need to take any action at this point. You can keep an attorney of your choice or you can take no action and remain an absent member of the class action. If you would like to learn more about this class action or have any questions about this announcement or your rights or interests in relation to the pending class action, please contact Charles Linehan, Esquire, by 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.
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SOURCE Glancy Prongay & Murray LLP