Bernstein Liebhard LLP Announces that a Securities Class Action Lawsuit Has Been Filed Against Root, Inc.
NEW YORK, March 24, 2021 (GLOBE NEWSWIRE) – Bernstein Liebhard LLP, a nationally recognized investor rights law firm, announces that a class action lawsuit has been filed on behalf of those who have bought or acquired (i) Root, Inc. (“Root” or the “Company”) (NASDAQ: ROOT) between October 28, 2020 and March 8, 2021 (the “Class Period”) and / or (b) Root Class A common stock pursuant to and / or traceable to the offer documents that were issued in connection with the company’s IPO on or around October 28, 2020 (“IPO” or “Offer”). The lawsuit was filed in the U.S. District Court for the Southern District of Ohio to seek damages for root investors under the Securities Act of 1933 and the Securities Exchange Act of 1934.
If you purchased root securities and / or would like to discuss your legal rights and options Please visit the class action lawsuit against common stockholders or contact Matthew E. Guarnero toll-free at (877) 779-1414 or MGuarnero@bernlieb.com
According to the lawsuit, throughout the class period, defendants made false and / or misleading statements and / or failed to disclose that: (i) Root would not be expected to generate positive cash flow for at least several years after the IPO; (ii) accordingly, the company would likely require significant cash infusions to meet its cash flow needs; (iii) Notwithstanding Defendants’ advertising of the allegedly unique, data-driven advantages of Root, some of the Company’s established industry peers did in fact have significant competitive advantages over Root, including in relation to telematics data and data binding; and (iv) as a result, the public statements made by the Offer Document and the Defendant were materially false and / or misleading throughout the teaching period and did not provide any information about the information contained therein.
On March 9, 2021, Bank of America’s securities analyst Joshua Shanker began reporting Root with an “underperform” rating, assuming the company is not expected to generate positive cash flow by 2027, and noted that Root “doesn’t need insignificant cash infusions from the capital markets to meet their cash flow needs.” Shanker also noted that Berkshire Hathaway’s Progressive, Allstate and Geico insurers would continue to hurt the company’s profitability, with Progressive and Allstate being a “sizeable one Advantage over Root in terms of the amount of “would have [telematics] Data as well as preoccupation with the data “used to evaluate their auto insurance.
In that news, Root’s share price fell $ 0.18 per share, or 1.46%, to close at $ 12.17 per share on March 9, 2021, a 54.93% decrease from the offer price.
If you want to stand as the lead plaintiff in the class action, you must reschedule by May 18, 2021 at the latest. A lead plaintiff is a representative party who acts on behalf of other class members in directing the dispute. Your ability to partake in a recovery does not require you to be the lead plaintiff. If you don’t take action, you may remain an absent class member.
If you purchased root securities and / or would like to discuss your legal rights and options Please visit https://www.bernlieb.com/cases/rootinc-root-shareholder-class-action-lawsuit-stock-fraud-382/apply/ or contact Matthew E. Guarnero toll-free at (877) 779-1414 or MGuarnero@bernlieb.com
Since 1993, Bernstein Liebhard LLP has collected more than $ 3.5 billion for its clients. In addition to representing individual investors, the firm has been hired by some of the country’s largest public and private pension funds to oversee their assets and litigate on their behalf. Because of its litigation success with hundreds of lawsuits and class actions, the firm has been featured on the National Law Journal’s “Hot List” thirteen times and on The Legal 500 for ten consecutive years.
LAWYER. © 2021 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The attorney responsible for this Connecticut state complaint is Michael S. Bigin. Past results do not guarantee or forecast a similar result with respect to future matters.
Matthew E. Guarnero
Bernstein Liebhard LLP