According to the Complaint, Defendants failed to disclose to investors that: (1) while Kroger accounted for less than 5% of the pharmacies accepting GoodRx discounts, Kroger was responsible for nearly 25% of GoodRx’s total prescription transactions revenue; and (2) Kroger could unilaterally cease accepting GoodRx discounts, cutting off some or all of GoodRx’s revenues for purchases at Kroger’s pharmacies.

On May 9, 2022, GoodRx revealed that, late in the first quarter of 2022, “a grocery chain had taken actions that impacted acceptance of discounts from most pharmacy benefit managers (“PBMs”) for a subset of drugs” and that this “impacted the acceptance of many PBM discounts for certain drugs at this grocer’s stores.”  GoodRx acknowledged that this disruption “could have an estimated revenue impact of roughly $30 million” in the second quarter of 2022 – resulting in GoodRx announcing disappointing second quarter 2022 revenue guidance of only about $190 million.

On this news, GoodRx’s stock price fell $2.78 per share, or over 25%, to close at $10.75 per share on May 9, 2022.

Then, on November 8, 2022, the Company provided further information on the severity of the revenue impact from the Kroger disruption.  GoodRx estimated that the “impact of the grocer issue on third quarter [prescription transactions revenue] was approximately $40 million” and  the Company expected “a combined $45 million to $50 million estimated impact to prescription transactions revenue” for the fourth quarter of 2022.

On this news, GoodRx’s stock price fell $1.18 per share, or over 22%, to close at $4.06 per share on November 9, 2022.

If you wish to serve as lead plaintiff, you must move the Court no later than June 21, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

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