Case Summary

agilon health

NYSE: AGL

Case Details

  • New England Teamsters Pension Fund v. agilon health, inc. et al.
  • Class Period:January 09, 2023 - January 04, 2024
  • Date Filed:March 19, 2024
  • Jurisdiction:U.S. District Court, Western District of Texas
  • Docket Number: 1:24-cv-00297
  • Lead Plaintiff Deadline: May 20, 2024
Days Left to
Seek Plaintiff
27

Overview

A class action lawsuit has been filed against agilon health, Inc. (“agilon” or the “Company”) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The agilon lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired agilon common stock between January 9, 2023 and January 4, 2024, both dates inclusive (the “Class Period”), and investors have until May 20, 2024 to seek appointment as lead plaintiff of the agilon class action lawsuit.

agilon 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.  This aspect of financial risk is inherent in agilon’s business model.

The lawsuit alleges that Defendants, throughout the Class Period and in the Second Public Offering Materials, 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.

The truth about the higher medical costs that agilon had been facing began to emerge on November 2, 2023.  On that date, 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%, 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 %, to close at $8.63 on January 5, 2024.

*          *          *

If you purchased or otherwise acquired agilon common stock between January 9, 2023 and January 4, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the agilon lawsuit is May 20, 2024.

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