SAN DIEGO, March 22, 2024 /PRNewswire/ — DiCello Levitt LLP announces that purchasers or acquirers of Agilon Health, Inc. (“Agilon” or the “Company”) (NYSE: AGL) common stock between January 9, 2023 and January 4, 2024, inclusive (the “Class Period”), have until May 20, 2024 to seek appointment as lead plaintiff of the Agilon class action lawsuit. The Agilon lawsuit charges the Company, certain senior executive officers, and the Company’s underwriters with violations of the federal securities laws.
If you purchased shares of Agilon common stock between January 9, 2023 and January 4, 2024, including pursuant to the Company’s May 2023 secondary public offering (“SPO”), and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/agilon-health/
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected].
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Case Allegations: The Agilon lawsuit alleges that throughout the Class Period and in the SPO materials, Defendants issued false and misleading statements about Agilon’s medical costs, including about: (1) the Company’s purported visibility into utilization trends and medical costs; (2) Agilon’s increased medical costs incurred prior to and during the Class Period due to higher utilization of healthcare by Medicare Advantage patients; (3) the adequacy of its incurred-but-not-reported reserve (“IBNR Reserve”); (4) the effectiveness of Agilon’s business model; (5) Agilon’s overly-optimistic financial guidance; and (6) the Company’s risk disclosures that mischaracterized as mere possibilities adverse facts that had already materialized.
On November 2, 2023, Agilon reported lower-than-expected third quarter 2023 results due to increased utilization and medical costs, lowered the Company’s 2023 full-year revenue outlook, and informed investors that Agilon had increased its IBNR Reserve to account for prior period medical expenses. On this news, Agilon’s stock price fell $2.23, or 13.2%, to close at $14.66 on November 3, 2023.
Then, on January 5, 2024, Agilon lowered its 2023 profit forecasts and reduced its 2023 Medical Margin and Adjusted EBITDA guidance, citing high-than-expected medical costs. Specifically, Agilon reduced its 2023 Medical Margin and Adjusted EBITDA outlooks by more than $110 million and $73 million, respectively. On this news, Agilon’s stock fell a further $3.45, or 28.6%, to close at $8.63 on January 5, 2024.
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SOURCE DiCello Levitt LLP
