NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Agilon Health, Inc. (NYSE: AGL) on behalf of long-term stockholders following a class action complaint that was filed against Agilon on March 19, 2024 with Class Period (1) Agilon common stock purchases traceable to the April 2021 initial public offering of Agilon stock; (2) pursuant, or traceable, or both, to materials issued in connection with the Company’s secondary public offering that occurred on or about May 16, 2023; and/or (3) common stock between April 15, 2021 and February 27, 2024. Our investigation concerns whether the board of directors of Agilon have breached their fiduciary duties to the company.
Agilon, headquartered in Austin, Texas, generates profits from reducing medical expenditures. By partnering primarily with Medicare Advantage (“MA”) plans as well as traditional Medicare and commercial managed care organizations, Agilon receives a fixed monthly payment from payers for each patient under its care. In return, Agilon takes on the responsibility of managing the total cost and quality of care for those patients. This model incentivizes Agilon and its contracted physician partners to focus on preventive care and improve health outcomes in order to control costs. If the total cost of caring for patients is less than the fixed payments Agilon receives, it realizes a profit. However, if costs exceed the payments, Agilon incurs a loss.
The Complaint alleges that, throughout the Class Period and in the SPO Materials, Defendants misled investors about Agilon’s medical costs by: (1) touting the Company’s purported visibility into utilization trends and medical costs; (2) failing to disclose increased medical costs that Agilon had incurred prior to and during the Class Period due to higher utilization of healthcare by MA patients; (3) falsely stating that its accounting reserves for higher-than-expected medical costs were adequate; (4) making false and misleading statements about the effectiveness of its business model; (5) issuing overly optimistic financial guidance; and (6) issuing risk disclosures that were materially false and misleading because they characterized adverse facts that had already materialized as mere possibilities.
On November 2, 2023, Agilon reported lower-than-expected third quarter 2023 results due to increased utilization and medical costs. Defendants also lowered the Company’s 2023 full-year revenue outlook and informed investors that Agilon had increased its accounting reserve for prior period medical expenses.
On this news, Agilon’s stock price fell $2.23, or 13.2 percent, to close at $14.66 on November 3, 2023.
Then, on January 5, 2024, Agilon surprised investors again by lowering its 2023 profit forecasts. Agilon also announced that its Chief Financial Officer, Timothy Bensley would retire and be replaced later in the year.
On this news, Agilon’s stock fell $3.45, or 28.6 percent, to close at $8.63 on January 5, 2024.
If you are a long-term stockholder of Agilon, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
