Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or acquired Ontrak, Inc. (“Ontrak”) (NASDAQ: OTRK) securities between November 5, 2020 and February 26, 2021, inclusive (the “Class Period”).
Ontrak investors may receive additional information about the case by clicking the link "Submit Your Information" above.
Ontrak is a healthcare company that offers a Predict-Recommend-Engage platform that organizes and automates healthcare data integration and analytics. A critical component of this platform are Ontrak programs, which are designed to provide healthcare solutions to members with behavioral conditions that cause or exacerbate chronic medical conditions.
The Class Period commences on November 5, 2020, when Ontrak announced its third quarter 2020 financial results in a press release. Ontrak also filed its quarterly report on a Form 10-Q for the period ended September 30, 2020.
On March 1, 2021, Ontrak issued a press release announcing preliminary financial results for the fourth quarter and full year 2020. In the press release, Ontrak stated that its largest customer had terminated its contract with Ontrak, effective June 26, 2021. Ontrak stated that this customer “evaluated Ontrak on a provider basis” and “[a]s such, the customer evaluated [Ontrak’s] performance based on [its] ability to achieve the lowest possible cost per medical visit, and not on [its] clinical outcomes data or medical cost savings.” Ontrak also stated that “the coaching model which Ontrak has pioneered for over a decade was seen by the customer to be less relevant to their performance metrics.”
Following this news, Ontrak’s share price fell $27.32, or more than 46%, to close at $31.62 per share on March 1, 2021.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose to investors that: (1) Ontrak’s largest customer evaluated Ontrak on a provider basis, valuing Ontrak’s performance based on achieving the lowest cost per medical visit rather than clinical outcomes or medical cost savings; (2) as a result, Ontrak’s largest customer did not find Ontrak’s program to be effective and was reasonably likely to terminate its contract with Ontrak; (3) because this customer accounted for a significant portion of Ontrak’s revenue, the loss of the customer would have an outsized impact on Ontrak’s financial results; and (4) as a result of the foregoing, the defendants’ positive statements about Ontrak’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you are a member of the class described above, you may no later than May 3, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll-free at (844) 887-9500; or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.