Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
03/10/2022
Initial Lawsuit
08/10/2022
Lawsuit Progression
10/11/2022
A 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).
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.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.