According to the Complaint, DocGo offers mobile health and medical transportation services for various health care providers in the U.S. and the United Kingdom.  In that capacity, the Company purports to leverage its proprietary technology platform to “provide [its] services in collaboration with leading healthcare organizations, via long-term relationships that are intended to drive meaningful revenue, help provide efficient and effective capital allocation and create low-risk opportunities for significant growth.”

In spring 2023, several thousand international migrants arrived in New York City seeking, among other things, employment and/or asylum.  In response, New York City Mayor Eric Adams (“Mayor Adams”) announced a new policy calling for the city to relocate migrants outside of New York City’s five boroughs. To oversee the relocation program, New York City awarded DocGo a no-bid $432 million contract (the “Relocation Contract”) that took effect in early May 2023.  The contract required DocGo to house migrants and provide them with services including case management, medical care, food, transportation, lodging, and round-the-clock security.

Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period.  Among other things, Defendants failed to disclose to investors that: (i) DocGo’s executive hiring processes were inadequate to fully review and vet the professional and academic backgrounds of job candidates; (ii) the foregoing increased the likelihood of disruptive executive turnover; (iii) contrary to its representations to investors, DocGo had overstated the efficacy of its mobile health and medical transportation services, the very services contemplated by the Relocation Contract; and (iv) all of the foregoing, once revealed, was likely to subject DocGo to significant reputational and/or regulatory scrutiny that would negatively impact the Company’s financial position and/or prospects.

On September 18, 2023, New York City Comptroller Brad Lander (“Comptroller Lander”) announced that his office was commencing a real-time audit of operations and invoices incurred by DocGo in connection with the Relocation Contract.  Specifically, Comptroller Lander noted that his office has “serious concerns about the selection of this vendor and its performance of contract duties.”

On this news, DocGo’s stock price fell $0.41 per share, or 7.19%, to close at $5.29 per share on September 18, 2023.

If you wish to serve as lead plaintiff, you must move the Court no later than December 26, 2023. 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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Bernstein Liebhard LLP
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