Oak Street Health (OSH) Investor Settlement

N.D. Illinois

Court

1:22-cv-00149

Case number

06 Aug 2020

Class period Start

08 Nov 2021

Class period End

Oak Street reached a settlement with $OSH investors over claims related to risky marketing practices, free rides for federal beneficiaries, and potential FCA violations.

Outline

Back in 2021, Oak Street was being investigated by the DOJ for risky marketing practices, free rides for federal beneficiaries, and potential FCA violations. Following the disclosure of this investigation, $OSH significantly fell, and Oak Street Health faced a lawsuit from investors.

Timeline
November 8, 2021: Oak Street Health disclosed a DOJ investigation in its Q3 report.
November 9, 2021: Following the disclosure, $OSH fell more than 20%.
January 10, 2022: The stockholder filed a lawsuit against Oak Street Health.
Background

Since it went public in 2020, Oak Street Health stated that it engaged Medicare-eligible patients through various community events and provided free transportation to federal healthcare beneficiaries.

However, on November 8, 2021, Oak Street announced a DOJ investigation into its marketing practices, including misleading patients, exaggerating outcomes, offering gifts, and sharing patient information without consent.

Following this disclosure, many news reported on the investigation.

Bloomberg noted that Oak Street Health "failed to disclose material adverse facts about the company’s business operations."

CNBC also highlighted that the DOJ's investigation "raised questions about the legality of Oak Street's marketing and transportation practices."

By November 9, 2021, $OSH fell by more than 20%.

On January 10, 2022, investors filed a class action lawsuit against Oak Street Health.

What can investors expect now?

Oak Street reached a settlement with $OSH investors over claims related to risky marketing practices, free rides for federal beneficiaries, and potential FCA violations.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Status

Stipulative Settlement

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.7

Filing date

10 January 2022

Plaintiffs

Central Pennsylvania Teamsters Pension Fund Defined Benefit Plan

Attorneys

Labaton Sucharow LLP, Law Office of Racine & Associates, Robbins Geller Rudman & Dowd LLP

Defendants

Michael Pykosz, Timothy Cook, Geoff Price, Griffin Myers, Regina Benjamin, Carl Daley, Cheryl Dorsey, Mohit Kaushal, Kim Keck, Julie Klapstein, Robbert Vorhoff, Srdjan Vukovic, Paul Kusserow

Judge

Hon. Jeffrey I. Cummings

Administrator

JND Legal Administration

Settlement agreement date

2024-08-13

Attorney fee

$17,400,000

Class wide damages

$1,845,500,000

Trades matching type

FIFO

+$60,000,000

Cash Settlement Amount

Frequently Asked Questions

When will you be able to apply for the payment?

Do I have to sell securities to be eligible?

How long does the payout process take?

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