What Every LifeStance Health Group, Inc. Shareholder Needs to Know About the Investigation of the LifeStance Health Board
The LifeStance Health class action lawsuit seeks to represent purchasers of LifeStance Health Group, Inc. (NASDAQ: LFST) common stock issued in connection with LifeStance Health’s June 10, 2021 initial public stock offering (the “IPO”). Captioned Nayani v. LifeStance Health Group, Inc., No. 22-cv-06833 (S.D.N.Y.) – the LifeStance Health class action lawsuit charges LifeStance Health, certain of its top executives and directors, as well as the IPO’s underwriters with violations of the Securities Act of 1933.
Additionally, read on to learn about the Firm’s investigation of the LifeStance Health Board.
Allegations in the LifeStance Health Class Action Lawsuit
LifeStance Health is one of the nation’s largest providers of virtual and in-person outpatient mental health care. LifeStance Health benefitted from the state and local lockdown orders necessitated by the COVID-19 pandemic starting in the spring of 2020. But by December 2020, several COVID-19 vaccines were being approved and administered, meaning LifeStance Health’s access to clients seeking virtual mental health services would significantly decline while demand for in-person services would increase. LifeStance Health conducted its IPO on June 10, 2021, selling 46 million shares at $18.00 per share, raising $828 million in gross proceeds.
However, as the LifeStance Health class action lawsuit alleges, the IPO’s registration statement failed to disclose the following material facts: (i) that the number of virtual visits clients were undertaking utilizing LifeStance Health was decreasing as the COVID-19 lockdowns were being lifted, thereby flatlining LifeStance Health’s out-patient/virtual revenue growth; (ii) that the percentage of in-person visits clients were undertaking utilizing LifeStance Health was increasing as the COVID-19 lockdowns were being lifted, thereby causing LifeStance Health’s operating expenses to increase substantially; (iii) that LifeStance Health 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 IPO’s registration statement and LifeStance Health had been expending additional costs to onboard new physicians who were less productive than the outgoing physicians they were replacing; and (iv) as a result, LifeStance Health’s business metrics and financial prospects were not as strong as the IPO’s registration statement represented.
At the time of the LifeStance Health class action lawsuit’s filing, LifeStance Health common stock traded in a range of $4.77-$7.70, a reduction of upwards of 73% from the price the shares were sold at in the IPO, as investors suffered losses in LifeStance Health.
Investigation of the LifeStance Health Board
The investigation of the LifeStance Health board focuses on whether the board of directors of LifeStance Health have breached their fiduciary duties to the company in light of the serious allegations raised in the LifeStance Health class action lawsuit filed against the Company and the resulting loss of market capitalization, among others. The firm urges long-term stockholders of LifeStance Health to call LifeStance Health Stock Loss Lawyer Timothy L. Miles today or simply submit the form at the bottom of the link if you have questions about the investigation of the LifeStance Health Board which remains ongoing.
Long-Term Stockholders Urged to Contact LifeStance Health Stock Loss Lawyer Timothy L. Miles
If you are a long-term stockholder of LifeStance Health, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact LifeStance Health Stock Loss Lawyer, Timothy L. Miles, by email at [email protected], or telephone at (858) Tim-M-Law, or by filling out the contact form at the bottom of the link and someone will promptly call you back. There is no cost or obligation to you, so go ahead and call and see what a LifeStance Health Stock Loss Lawyer can do for you.
Timothy L. Miles, Esq.
Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles was recentely selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019). Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, and more.
Timothy L. Miles
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