| COMPANY |
Ontrak, Inc. |
| COURT |
United States District Court for the Central District of California |
| CASE NUMBER |
21-cv-01987 |
| JUDGE |
The Honorable Fernando L Aenlle-Rocha |
| CLASS PERIOD |
November 5, 2020 - February 26, 2021 |
| SECURITY TYPE |
All Securities |
Case Background:
On August 23, 2021, the initial complaint in this securities class action was filed against Ontrak. Inc. (“Ontrak” or the “Company”) and certain of Ontrak’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action on behalf of all persons who purchased or otherwise acquired Ontrak securities between November 5, 2020 through February 26, 2021, both dates 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, the complaint alleges that, Defendants failed to disclose to investors 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’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Current Status of Case:
On February 2, 2024, the Court entered an Order granting Motion to Dismiss. Lead Plaintiff filed a Third Amended Complaint on March 5, 2024. On March 19, 2024, Defendants filed a Motion to Dismiss Third Amended Complaint. On September 3, 2024, the Court entered an Order granting the Motion to Dismiss. On September 30, 2024, Lead Plaintiff filed a Notice of Appeal. This case is on appeal and is ongoing.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; 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.