Please complete this form relating to your transactions for Oscar Health, Inc. (NYSE: OSCR) Class A common stock between March 3, 2021 and May 12, 2022, inclusive (the “Class Period”).
You may also contact James Maro, Esq. (484) 270-1453; or you may submit your information via email at email@example.com; or you may click here to print a PDF of this form.
Oscar investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than July 11, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Oscar Health, Inc. (“Oscar”) (NYSE: OSCR) Class A common stock between March 3, 2021 and May 12, 2022, inclusive (the “Class Period”).
Oscar is a health insurance company that claims to be the first “built around a full stack technology platform” which will “allow [Oscar] to continue to innovate like a technology company and not a traditional insurer.” On March 2, 2021, Oscar filed its final amendment to the Registration Statement on a Form S-1/A, which forms part of the Registration Statement. The Registration Statement was declared effective the same day. On March 4, 2021, Oscar filed its prospectus on a Form 424B4, which forms part of the Registration Statement. In the IPO, Oscar sold 36,391,946 shares of Class A common stock at a price of $39.00 per share. Oscar received net proceeds of approximately $1.3 billion from the Offering. According to the complaint, the Registration Statement touted Oscar’s growth opportunities.
The truth began to emerge on August 12, 2021, when Oscar disclosed that its Medical Loss Ratio (“MLR”) for the second quarter of 2021 was 82.4%, an increase of 2170 basis points year-over year. Oscar claimed that “[t]he MLR increased to 82.4% in 2Q21 from 60.7% in 2Q20 primarily driven by meaningfully lower utilization in 2Q20 as a result of COVID-19, as well as higher COVID-19 testing and treatment costs and a return to more normalized utilization in 2Q21.” Oscar also disclosed that its net loss for the quarter was $73.1 million, an increase of $32.1 million year-over-year.
Then, on November 10, 2021, Oscar disclosed that its third quarter 2021 MLR increased 920 basis points year-over-year, to 99.7%. Oscar claimed that the MLR increase was “primarily driven by higher net COVID costs as compared to the net benefit in 3Q20, an unfavorable prior year Risk Adjustment Data Validation (RADV) result, and the impact of significant [Special Enrollment Period (“SEP”)] membership growth.” Oscar also disclosed that its net loss for the quarter was $212.7 million, an increase of $133.6 million year-over-year.
During a conference call on November 10, 2021, Scott Blackley, Oscar’s Chief Financial Officer, stated, “We recognized approximately $20 million of risk adjustment expense this quarter related to our risk adjustment data validation audit or RADV results. The RADV exercise is atypical this year due to COVID. It spans two years, 2019 and 2020. The majority of the RADV headwinds relate to the 2019 audit results, which were recently completed.” Following this news, Oscar’s share price fell $4.05 per share, or 24.5%, to close at $12.47 per share on November 11, 2021. At the time of the filing of the complaint, Oscar stock has traded as low as $5.76 per share, a more than 85% decline from the $39.00 per share IPO price.
The complaint alleges that the Registration Statement was materially false and misleading and omitted to state that: (1) Oscar was experiencing growing COVID-19 testing and treatment costs; (2) Oscar was experiencing growing net COVID costs; (3) Oscar would be negatively impacted by an unfavorable prior year RADV result relating to 2019 and 2020; (4) Oscar was on track to be negatively impacted by significant SEP membership growth; and (5) as a result of the foregoing, the defendants’ positive statements about Oscar’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
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: James Maro, Esq. (484) 270-1453 or via e-mail at firstname.lastname@example.org. 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.