NEW YORK, NY / ACCESSWIRE / February 14, 2024 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of LifeStance Health Group, Inc. (" LifeStance" or "the Company") (NASDAQ:LFST). Investors who purchased LifeStance securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/LFST.
Investigation Details:
On February 1, 2024, Hindenburg Research ("Hindenburg") published a report entitled "LifeStance: A Private Equity-Backed Mental Health Rollup Headed For A Breakdown," which described LifeStance as "a classic example of what happens when private equity meets a ‘hot' healthcare sector: Massive debt fueling a grinding, metric-focused corporate culture resulting in worse quality of care for patients, a worse environment for clinicians and long-term losses for the average investor."
The Hindenburg report opined that "LifeStance will need to raise cash imminently given its latest Q3 '23 results showing its (1) razor-thin cash balance of $42.6 million; (2) quarterly cash burn of $33.7 million; and (3) $42 million in expected cash payments by the end of Q1 '24 to settle litigation alleging that LifeStance misled IPO investors." Citing "[a] former LifeStance manager", the report stated that "the employee mix between therapy and psychiatry is critical information for investors to understand margin and profitability potential, but LifeStance doesn't regularly share those metrics." The report also asserted that "[a]ccording to two employee class action lawsuits and an employment lawsuit, LifeStance overpromises on compensation."
Following publication of the Hindenburg report, LifeStance's stock price fell $0.34 per share, or 5.69%, to close at $5.64 per share on February 1, 2024.
What's Next?
If you are aware of any facts relating to this investigation or purchased LifeStance securities, you can assist this investigation by visiting the firm's site: bgandg.com/LFST. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
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Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
332-239-2660 | [email protected]
SOURCE: Bronstein, Gewirtz & Grossman, LLC