LOS ANGELES – Glancy Prongay & Murray LLP (“GPM”), a number one national shareholder legal rights law practice, announces that the class action lawsuit suit continues to be filed with respect to investors who purchased or else acquired LifeStance Health Group, Corporation. (“LifeStance” or even the “Company”) (NASDAQ: LFST) common stock pursuant and/or traceable towards the Registration Statement and Prospectus issued regarding the LifeStance’s June 10, 2021 initial public stock offering (the “IPO”). LifeStance investors have until October 11, 2022 to file for a lead complaintant motion.
Should you endured a loss of revenue in your LifeStance investments or want to question potentially going after states recover whatever is lost underneath the federal securities laws and regulations, you are able to submit your contact details at world wide web.glancylaw.com/cases/lifestance-health-group-corporation/. You may also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to understand more about your legal rights.
On or about June 11, 2021, LifeStance conducted its IPO, issuing 46 million shares at $18 per share.
On August 11, 2021, LifeStance announced its financial recent results for second quarter 2021, which ended just days following the IPO. The Organization reported a internet lack of $70 million as well as disclosed that it is operating expenses had greater than tripled throughout the second quarter. LifeStance mentioned it had possessed a significant, negative “recent alternation in clinician retention levels.”
About this news, their stock cost fell $10.16, or 46%, to shut at $11.71 per share on August 12, 2021, therefore injuring investors.
Then, on November 8, 2021, LifeStance released its third quarter 2021 financial results, disclosing that “[c]linician retention [had] stabilized to roughly 80% annualized within the third quarter,” which the organization was getting to improve paying for “enhanced clinician engagement and ongoing support for workplace and work-existence versatility.”
About this news, their stock cost fell $3.10, or 24%, to shut at $9.73 per share on November 9, 2021, therefore injuring investors further.
Then, on March 10, 2022, LifeStance reported its fiscal 2021 results, proclaiming that research conducted recently had proven that 75 % of mental health patients prefer in-person services which through 2021, telehealth services trended downwards. Furthermore, the organization mentioned that it might be reducing the amount of physical facilities that it might be building within the immediate future to be able to increase its profitability.
At that time the complaint was filed, LifeStance’s common stock has traded around 73% below compared to IPO cost.
The complaint filed within this class action lawsuit alleges that Defendants made materially false and/or misleading statements, in addition to unsuccessful to reveal material adverse details concerning the Company’s business, operations, and prospects. Particularly, Defendants unsuccessful to reveal to investors: (1) that the amount of virtual visits clients were undertaking utilizing LifeStance was decreasing because the COVID-19 lockdowns appeared to be lifted, therefore flatlining their out-patient/virtual revenue growth (2) the number of in-person visits clients were undertaking utilizing LifeStance was growing because the COVID-19 lockdowns appeared to be lifted, therefore resulting in the Company’s operating expenses to improve substantially (3) that LifeStance had lost a lot of physicians because of burn-out and, consequently, its physician retention rate had fallen considerably underneath the 87% highlighted within the Registration Statement and the organization have been expending additional costs to onboard new physicians who have been less productive compared to outgoing physicians these were replacing and (4) consequently, Defendants’ positive statements concerning the Company’s business, operations, and prospects were materially misleading and/or lacked an acceptable basis whatsoever relevant occasions.
Should you purchased or else acquired LifeStance common stock pursuant and/or traceable towards the IPO, you might slowly move the Court no after October 11, 2022 to inquire about a legal court to appoint you as lead complaintant. To become a person in the category you needn’t make any move at the moment you might retain counsel of your liking or take no action and turn into an absent person in the category. If you want to understand more about this course of action, or you have questions regarding this announcement or perhaps your legal rights or interests regarding these things, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, La California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at world wide web.glancylaw.com. Should you inquire by email please incorporate your mailing address, phone number and quantity of shares purchased.