SAN FRANCISCO, CA / ACCESSWIRE / October 3, 2022 / Hagens Berman urges LifeStance Health Group, Inc. (NASDAQ:LFST) investors with significant losses to submit your losses now.
Relevant Period: June 7, 2021 - Aug. 10, 2022
Lead Plaintiff Deadline: Oct. 11, 2022
Contact An Attorney Now: [email protected]
LifeStance Health Group, Inc. (LFST) Securities Class Action:
The action is brought on behalf of purchasers of Lifestance common stock pursuant and/or traceable to the Registration Statement issued in connection with LifeStance's June 10, 2021 IPO.
The complaint alleges that Lifestance's IPO Registration Statement failed to disclose that: (1) the number of virtual visits clients were undertaking utilizing LifeStance was decreasing as the COVID-19 lockdowns were being lifted, thereby flatlining the Company's out-patient/virtual revenue growth; (2) operating expenses increased as clients' in-person visits increased in response to lifting of lockdown orders; (3) physician burnout rate rose, driving physician retention well below 87% and necessitating additional costs to onboard new, albeit less productive, physicians, and (4) as a result of the foregoing, LifeStance's business metrics and financial prospects were not as strong as the Registration Statement represented.
On Aug. 11, 2021, LifeStance reported Q2 2021 financial results. Management blamed the dismal results on increased physician turnover, admitting they saw this trend midway through Q2 2021, and explained that new hires would be less productive for up to six months.
On Nov. 8, 2021, LifeStance reported Q3 2021 financial results, disclosing "[c]linician retention [had] stabilized to approximately 80% annualized in the third quarter."
On Mar. 10, 2022, LifeStance reported FY 2021 financial results. Management admitted that three quarters of mental health patients prefer in-person services, "[w]hen COVID first emerged in 2020, our patient visits moved from 5% virtual to over 90% virtual within weeks," they expected a 50-50 mix of virtual to in-person services. Nonetheless, management said the company would reduce the number of planned brick & mortar facilities to be built.
At the time of the filing of the complaint, LifeStance shares have decreased more than 70% from the price the shares were sold at in the IPO.
"We're focused on investors' losses and proving the Registration Statement failed to disclose material adverse trends adversely impacting LifeStance," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in LifeStance and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding LifeStance should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP