Case View

OSCAR HEALTH, INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES

Oscar Health, Inc.

Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Oscar Health, Inc. (“Oscar” or the “Company”) (NYSE: OSCR) common stock pursuant to and/or traceable to the registration statement and prospectus issued in connection with the Company’s March 2021 initial public offering. The lawsuit seeks to recover Oscar shareholders’ investment losses.

If you purchased common stock in Oscar Health Inc. pursuant to and/or traceable to the registration statement and prospectus issued in connection with the Company’s March 2021 initial public offering, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.

Oscar is a health insurance company that claimed to be the first such company “built around a full stack technology platform” which will “allow [Oscar] to continue to innovate like a technology company and not a traditional insurer.”

In March 2021, Oscar conducted its IPO, selling 36,391,946 shares of Class A common stock at a price of $39.00 per share.  The Company received net proceeds of approximately $1.3 billion from the Offering which were purportedly to be used to repay in full outstanding borrowings, including fees and expenses, under Oscar’s Term Loan Facility ($167 million), and the remainder proceeds were to be used for general corporate purposes.

Plaintiff alleges that Defendants’ statements in the Registration Statement were materially false and misleading when made because: (1) Oscar was experiencing growing COVID-19 testing and treatment costs; (2) Oscar was experiencing growing net COVID costs; (3) Oscar would be negatively impacted by an unfavorable prior year Risk Adjustment Data Validation (RADV) result relating to 2019 and 2020; and (4) Oscar was on track to be negatively impacted by significant SEP membership growth.

On August 12, 2021, Oscar disclosed that the Company’s Medical Loss Ratio (“MLR”) for the second quarter of 2021 was 82.4%, an increase of 2170 basis points year-over year.  The Company claimed that “[t]he MLR increased to 82.4% in 2Q21 from 60.7% in 2Q20, primarily driven by meaningfully lower utilization in 2Q20 as a result of COVID-19, as well as higher COVID-19 testing and treatment costs and a return to more normalized utilization in 2Q21.”  The Company also disclosed that its net loss for the quarter was $73.1 million, an increase of $32.1 million year-over-year.

On November 10, 2021, Oscar disclosed that its third quarter 2021 MLR increased 920 basis points year-over-year, to 99.7%.  The Company claimed that the MLR increase was “primarily driven by higher net COVID costs as compared to the net benefit in 3Q20, an unfavorable prior year Risk Adjustment Data Validation (RADV) result, and the impact of significant SEP membership growth.”  The Company also disclosed that its net loss for the quarter was $212.7 million, an increase of $133.6 million year-over-year.

Since the IPO, the price of Oscar Health’s stock has fallen over 85%, closing as low as $5.72 per share on May 12, 2022.

If you wish to serve as lead plaintiff, you must move the Court no later than July 11, 2022. 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.

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.

ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact Information:

Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com