NEW YORK, March 3, 2024 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors of LifeStance Health Group, Inc. (“LifeStance” or the “Company”) (NASDAQ: LFST). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether LifeStance and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On February 1, 2024, Hindenburg Research (“Hindenburg”) published a report entitled “LifeStance: A Private Equity-Backed Mental Health Rollup Headed For A Breakdown”, which described LifeStance as “a classic example of what happens when private equity meets a ‘hot’ healthcare sector: Massive debt fueling a grinding, metric-focused corporate culture resulting in worse quality of care for patients, a worse environment for clinicians and long-term losses for the average investor.” The Hindenburg report opined that “LifeStance will need to raise cash imminently given its latest Q3 ’23 results showing its (i) razor-thin cash balance of $42.6 million (ii) quarterly cash burn of $33.7 million and (iii) $42 million in expected cash payments by the end of Q1 ’24 to settle litigation alleging that LifeStance misled IPO investors.” Citing “[a] former LifeStance manager”, the report stated that “the employee mix between therapy and psychiatry is critical information for investors to understand margin and profitability potential, but LifeStance doesn’t regularly share those metrics.” The report also asserted that “[a]ccording to two employee class action lawsuits and an employment lawsuit, LifeStance overpromises on compensation.”
Following publication of the Hindenburg report, LifeStance’s stock price fell $0.34 per share, or 5.69%, to close at $5.64 per share on February 1, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
