Saxena White P.A. Files Securities Fraud Class Action Against Evolent Health, Inc.
08 Agosto 2019 - 2:47PM
Saxena White P.A. has filed a securities fraud class action lawsuit
in the United States District Court for the Eastern District of
Virginia against Evolent Health, Inc. (“Evolent” or the “Company”)
(NYSE: EVH) on behalf of all persons or entities who purchased or
otherwise acquired Evolent common stock between March 3, 2017 and
May 28, 2019, inclusive (the “Class Period”).
If you purchased Evolent common stock during the
Class Period and wish to apply to be lead plaintiff, a motion on
your behalf must be filed with the Court by no later than October
7, 2019. You may contact David Kaplan (dkaplan@saxenawhite.com), an
attorney and Director at Saxena White P.A., to discuss your rights
regarding the appointment of lead plaintiff or your interest in the
class action. You may also retain counsel of your choice and need
not take any action at this time to be a class member.
Evolent provides health care delivery and
payment services to a national network of health systems across
Medicare, Medicaid and commercial markets. By the end of
2018, Evolent had contractual relationships with over 35 operating
partners. Many of these “partners” were either related
parties, or companies in which Evolent had significant ownership or
had provided financing at the onset of the relationship.
Evolent’s largest and most important partner was University Health
Care, Inc., d/b/a Passport Health Plan (“Passport”), which
represented 20% of the Company’s revenues.
The Complaint asserts claims for violations of
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934
against Evolent and certain of its senior executives
(“Defendants”). The action alleges that during the Class
Period, Defendants issued a series of false and/or misleading
statements and failed to disclose material adverse facts about
Evolent’s business, operations, and prospects, including Evolent’s
“partnership” with Passport specifically. Among other things,
Defendants mispresented and failed to disclose that: (1) Evolent’s
partnership model did not align the Company’s interests with those
of its partners, as the model was designed to inflate the Company’s
revenue by extracting enormous administrative and management fees
at the expense of its operating partners such as Passport; (2)
Passport was struggling financially, particularly after Kentucky
cut its reimbursement rates, and the partnership between Evolent
and Passport was becoming increasingly unsustainable; (3) Evolent
was draining Passport of functions, employees and money, to such an
extent that Passport was left on the verge of insolvency; (4)
Passport was conducting a bidding process for several months to
sell itself to prevent liquidation; and (5) as a result of the
foregoing, Defendants’ public statements were materially false
and/or misleading and/or lacked a reasonable basis.
Ultimately, on May 29, 2019, Evolent shocked
investors when it unexpectedly announced that it was buying a
controlling interest in Passport, which was essentially a bailout
of the financially distressed health plan. Evolent acquired
Passport despite previously stating that it had no intention of
buying Passport or any other health plans for the foreseeable
future, and that acquiring health plans was not part of its
strategic focus. In addition, Evolent admitted that Passport
was performing poorly and was not being run or managed properly,
despite paying massive management fees to Evolent for what was
previously understood by investors to be an aligned
relationship. In reaction to these disclosures, Evolent’s
stock price plummeted nearly 30%.
You may obtain a copy of the Complaint and
inquire about actively joining the class action at
www.saxenawhite.com.
Saxena White P.A., with offices in Florida, New
York, and California, concentrates its practice on prosecuting
securities fraud and complex class actions on behalf of
institutions and individuals. Currently serving as lead counsel in
numerous securities fraud class actions nationwide, the firm has
recovered hundreds of millions of dollars on behalf of injured
investors and is active in major litigation pending in federal and
state courts throughout the United States.
CONTACT INFORMATIONDavid
Kaplan, Esq.dkaplan@saxenawhite.com Saxena White P.A.12750 High
Bluff Drive, Suite 475San Diego, CA 92130Tel: (858) 987-0860 Fax:
(858) 369-0096www.saxenawhite.com
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