Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Ontrak. Inc. (“Ontrak”) (NASDAQ: OTRK) securities between November 5, 2020 and February 26, 2021, inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company’s business, operations and. prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Ontrak’s largest customer evaluated the company on a provider basis, valuing Ontrak’s performance based on achieving the lowest cost per medical visit rather than clinical outcomes or medical cost savings; (2) as a result, Ontrak’s largest customer did not find the company’s program to be effective and was reasonably likely to terminate its contract with Ontrak; (3) because this customer accounted for a significant portion of the company’s revenue, the loss of the customer would have an outsized impact on Ontrak’s financial results; and (4) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On March 19, 2024, Defendants filed a Motion to Dismiss the Amended Complaint. On September 3, 2024, the Court granted Defendants’ Motion, and on September 30, 2024, Lead Plaintiff filed a Notice of Appeal to the Ninth Circuit Court of Appeals. The appeal is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.