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LifeStance Health Group (LFST) IPO $50M Shareholder Settlement

Claim deadline for this case already passed by, but we can still try and file for compensation for you
S.D. New York
Court
1:22-cv-06833
Case number
10 Jun 2021
Class period Start
08 Nov 2021
Class period End
17 Jan 2024
Claim deadline
LifeStance Health Group settles $50 million with shareholders to end claims over IPO in 2021.

On August 11, 2021, LifeStance published its financial results which reported a $70 million net loss and issued Q3 guidance that was below previous estimates.

On August 12, LifeStance's stock price fell 46% and closed at $11.71 per share.

During the COVID-19 pandemic, LifeStance benefitted from the state and local lockdown orders. Total revenue grew from $100.3 million in 2018 to $377.2 million in 2020 on a pro forma basis.

Back on June 11, 2021, when LifeStance filed the final Prospectus for the IPO, the shares were priced at $18.00. In its IPO documentation, LifeStance did not inform prospective investors of the negative impact on the company’s business of lifting the COVID restrictions, which increased operating expenses with fewer online and more in-person patient visits, and increased costs of onboarding new physicians.

Investors have not recovered their losses, the stock is still trading in the $5-$11 range in 2022, a drop from the IPO price of $18.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.72
Filing date
10 August 2022
Lead Plaintiff Deadline
09 October 2022
Plaintiffs
Nizar S. Nayani
Attorneys
Robbins Geller Rudman & Dowd LLP (Melville, NY)
Defendants
Michael K. Lester, J. Michael Bruff, Robert Bessler, Darren Black, Jeffrey Crisan, William Miller, Jeffrey Rhodes, Eric Shuey, Katherine Wood
Judge
Hon. Jed S. Rakoff
Administrator
A.B. Data Ltd
Settlement agreement date
2023-10-13
Court hearing date
24 January 2024
Exclusion deadline
03 January 2024
Objection deadline
03 January 2024
Hearing deadline
03 January 2024
Trades matching type
FIFO
+$50,000,000
Total Settlement Amount

Lifestance Health Group Inc

LifeStance Health Group, Inc., through its subsidiaries, provides outpatient mental health services. The company offers patients a suite of mental health services, including psychiatric evaluations...

    Ticker
    LFST.US
    ISIN
    US53228F1012
    CIK
    1845257
    Sector
    Healthcare
    Industry
    Medical Care Facilities
    Country
    USA
    Address
    4800 N. Scottsdale Road, Scottsdale, AZ, United States, 85251