ONTRAK ALERT: Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against Ontrak, Inc. and Encourages Investors to Contact the Firm
NEW YORK–(BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, has announced in the US District Court for the Central District of California on behalf of investors that Ontrak, Inc. November 2020 and February 26, 2021 inclusive (the “Class Period”). Investors have until May 3, 2021 to apply to the court for appointment as the lead plaintiff in the lawsuit.
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On March 1, 2021, Ontrak issued a press release with preliminary financial results for the fourth quarter and full year 2020, in which the company stated that its largest customer had terminated its contract with Ontrak effective June 26, 2021. The company stated that the 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 pioneered for over a decade has been viewed by customers as being less relevant to their performance metrics. ”
In that news, the company’s stock price fell $ 27.32, or more than 46%, to close at $ 31.62 per share on March 1, 2021.
The complaint, filed on March 3, 2021, alleges that throughout the classroom period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, business and prospects. 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) that Defendants’ positive statements about the Company’s business, operations, and prospects as a result of the foregoing were materially misleading and / or were unfounded.
If you have purchased Ontrak securities during the class period and suffered a loss, are a long-term shareholder, have information, want to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at email@example.com, by phone at (212) 355-4648, or by completing this contact form. There are no costs or obligations for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. More information about the company can be found at www.bespc.com. Lawyer advertising. Previous results do not guarantee similar results.