SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against agilon health, inc. - AGL
NEW YORK, April 28, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against agilon health, inc. ("Agilon" or the "Company") (NYSE: AGL). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Agilon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until May 20, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Agilon securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On April 15, 2021, Agilon conducted its initial public offering, selling over 53 million shares of its stock at $23.00 per share.
On November 2, 2023, Agilon issued a press release announcing its third quarter financial results for the 2023.
Therein, Agilon revealed a significant deterioration in its medical margins coming in at just $108 million for the quarter, far below analyst consensus estimates, due in part to $9 million in previously unreported prior year claims. In addition, Agilon disclosed that it had suffered a $6 million loss in quarterly adjusted EBITDA, which also missed analyst estimates, and sharply lowered its 2023 expected medical margins. On a related earnings call, Agilon executives revealed that the Company had suffered higher utilization rates earlier in the year, had already significantly drawn down the reserves it had set aside to cover increased costs, and was adding an additional $30 million to its reserves because of the potential for higher utilization trends to continue.
On this news, Agilon's stock price fell $2.23 per share, or 13%, to close at $14.66 per share on November 3, 2023.
On January 5, 2024, Agilon issued a press release revealing that it had suffered dramatically higher prior medical expenses than previously revealed and, as a result, was again significantly lowering its 2023 expected medical margin. Agilon also disclosed that its adjusted EBITDA had fallen significantly, withdrew its 2026 guidance, and provided a dismal 2024 outlook. Separately, Agilon announced that its Chief Financial Officer would be stepping down from that role. During a related earnings call that day, Company management admitted, among other things, that Agilon had failed to include "elevated cost trends" in its prior forecast provided to investors.
On this news, Agilon's stock price fell $3.45 per share, or nearly 29%, to close at $8.63 per share on January 5, 2024.
Then, on February 27, 2024, Agilon issued a press release revealing that its medical costs and utilization rates were even higher than previously represented and that its 2023 medical margin had come in at just $299 million for the year, far lower than the already reduced range of $340 million to $360 million. Agilon also revealed, among other things, that it had slashed its 2024 medical margin guidance by 27% and its 2024 adjusted EBITDA guidance from a $40 to $60 million gain to a $15 to $60 million loss.
On this news, Agilon's stock price fell $0.44 per share, or 7%, to close at $6.04 per share on March 1, 2024. In subsequent days, the price of Agilon stock continued to decline, falling to a low of just $5.66 per share.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article