Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Evolent Health, Inc. (“Evolent” or the “Company”) (NYSE: EVH) common stock between March 3, 2017 and May 28, 2019 inclusive (the “Class Period”). Evolent investors have until October 7, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Evolent investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On May 29, 2019, Evolent announced that it had agreed to purchase a controlling interest in University Health Care, Inc., d/b/a/ Passport Health Plan (“Passport”), despite prior statements that acquiring health plans was not part of the Company’s strategic focus.
On this news, Evolent’s share price fell $4.14 per share, nearly 30%, to close at $10.01 per share on May 29, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Evolent's partnership model was not aligned with its partners, as it was designed to parasitically increase its own revenue by extracting enormous administrative and management fees at the expense of its partners such as Passport; (2) that Passport was struggling financially, particularly after Kentucky cut its reimbursement rates, and the partnership between Evolent and Passport was becoming increasingly unsustainable; (3) that Evolent was draining Passport of functions, employees, and money to such an extent that Passport was left on the verge of insolvency; (4) that for several months, Passport was conducting a bidding process to sell itself to a financial buyer to prevent liquidation; and (5) that as a result of the foregoing, Defendants public statements were materially false and/or misleading and/or lacked a reasonable basis.
If you purchased Evolent securities, 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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