Sign In
OSH.US
id: 1248

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
Tentative Settlement
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
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
Class wide damages
$1,845,500,000
Trades matching type
FIFO

Frequently Asked Questions