Initial Lawsuit
First Complaint - 08/10/2022A LifeStance Health Group, Inc. investor filed a securities class action on behalf of all purchasers of the common stock of LifeStance pursuant and/or traceable to the registration statement and prospectus issued in connection with LifeStance’s June 10, 2021, initial public stock offering (IPO).
- Filing Date
08/10/2022 - Public Offering Date
06/10/2021 - Transgression
Securities Violation - Filing Firms
Robbins Geller Rudman & Dowd LLP - Case Title
Nayani v. LifeStance Health Group, Inc. et al - Docket Number
1:22-cv-06833 - Court
New York Southern District Court - Free File
Complaint
Allegations
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:
(a) that 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;
(b) that the percentage of in-person visits clients were undertaking utilizing LifeStance was increasing as the COVID-19 lockdowns were being lifted, thereby causing the company’s operating expenses to increase substantially;
(c) that LifeStance had lost a large number of physicians due to burn-out and, as a result, its physician retention rate had fallen significantly below the 87% highlighted in the registration statement and the company had been expending additional costs to onboard new physicians who were less productive than the outgoing physicians they were replacing; and
(d) as a result of the foregoing, LifeStance’s business metrics and financial prospects were not as strong as the IPO’s registration statement represented.
Defendants
- Company
LifeStance Health Group, Inc. - Chief Executive Officer
Michael K. Lester - Chief Financial Officer
J. Michael Bruff - Director
Robert Bessler - Director
Darren Black - Director
Jeffrey Crisan - Director
William Miller - Director
Jeffrey Rhodes - Director
Eric Shuey - Director
Katherine Wood - Underwriter
Morgan Stanley & Co. LLC - Underwriter
Goldman Sachs &Co. LLC - Underwriter
J.P. Morgan Securities LLC - Underwriter
Jefferies LLC - Underwriter
TPG Capital BD, LLC - Underwriter
UBS Securities LLC - Underwriter
William Blair &Company, L.L.C.
