SAN FRANCISCO, CA – (May 16, 2022) – The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired Class A common stock of Oscar Health, Inc. (“Oscar” or the “Company”) (NYSE: OSCR) pursuant and/or traceable to Oscar’s registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with its March 2021 initial public offering (the “IPO”).
If you purchased or otherwise acquired Oscar Class A common stock in the IPO, you may move the Court for appointment as lead plaintiff by no later than July 11, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Oscar investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here, text or email email@example.com, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background on the Oscar Securities Class Litigation
Oscar, headquartered in Manhattan, New York, is a health insurance company that claims to be “built around a full stack technology platform” which allows the company to “continue to innovate like a technology company and not a traditional insurer.” In March 2021, Oscar Health completed its IPO, selling 36 million shares of Class A common stock at $39 per share, for proceeds of approximately $1.3 billion.
The action alleges that the IPO Registration Statement was materially false and misleading and omitted to state: (1) that Oscar was experiencing growing COVID-19 testing and treatment costs; (2) that Oscar was experiencing growing net COVID costs; (3) that Oscar would be negatively impacted by an unfavorable prior year Risk Adjustment Data Validation (“RADV”) result relating to 2019 and 2020; and (4) that Oscar was on track to be negatively impacted by significant Special Enrollment Period (“SEP”) membership growth.
On August 12, 2021, Oscar revealed that its Medical Loss Ratio (“MLR”) for the second quarter of 2021 increased to 82.4%, compared to 60.7% in the second quarter of 2020, and was “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.
On November 10, 2021, Oscar reported that its third quarter 2021 MLR increased to 99.7%, claiming that the increase was largely attributable to “higher net COVID costs as compared to the net benefit in 3Q20, an unfavorable prior year [RADV] result, and the impact of significant 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. On the same day, Oscar’s CEO revealed during an earnings conference call with analysts and investors that the Company “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.” On this news, the price of Oscar’s stock price fell $4.05 per share, or $24.5%, from its closing price of $16.52 on November 10, 2021, to close at $12.47 on November 11, 2021.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP