INVESTOR ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action Lawsuit Against Ontrak, Inc.
NEW YORK–(BUSINESS WIRE) – Kirby McInerney LLP law firm announces that a class action lawsuit has been filed in the US District Court for the Central District of California on behalf of those who have acquired Ontrak, Inc. (“Ontrak” or the “Company”). (NASDAQ: OTRK) securities from November 5, 2020 through 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.
On March 1, 2021, Ontrak issued a press release containing 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. This customer “rated Ontrak Provider base “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 share price fell $ 27.32, or approximately 46%, to close at $ 31.62 per share on March 1, 2021, hurting investors.
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.
If you have purchased or otherwise acquired Ontrak securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, via email at investigations @ kmllp. com or by filling out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm focused on securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities disputes have resulted in total recoveries of $ billion. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.