Oak Street Health, Inc.

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:

(1) that Oak Street maintained relationships with third-party marketing agents likely to provoke law enforcement scrutiny;
(2) that Oak Street was providing free transportation to federal health care beneficiaries in a manner that would provoke law enforcement scrutiny;
(3) that these activities may be violations of the False Claims Act;
(4) that, as such, Oak Street was at heightened risk of investigation by the Department of Justice and/or other federal law enforcement agencies;
(5) that, as a result, Oak Street was subject to adverse impacts related to defense and settlement costs and diversion of management resources; and
(6) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.