Case Summary

DocGo

NASDAQ: DCGO

Case Details

  • Naclerio v. DocGo Inc., et al.
  • Class Period:November 08, 2022 - September 17, 2023
  • Date Filed:October 27, 2023
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:23-cv-09476
  • Lead Plaintiff Deadline: December 26, 2023
Days Left to
Seek Plaintiff
22

Overview

A class action lawsuit, captioned Naclerio v. DocGo Inc., et al. has been filed against Tandem DocGo Inc. (“DocGo” or the “Company”) (NASDAQ: DCGO), and certain of the Company’s top executive officers alleging that they violated the federal securities laws.  The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired DocGo securities between November 8, 2022, and September 17, 2023, both dates inclusive (the “Class Period”).

DocGo offers mobile health and medical transportation services for various health care providers in the U.S. and the United Kingdom. In that capacity, the Company purports to leverage its proprietary technology platform to “provide [its] services in collaboration with leading healthcare organizations, via long-term relationships that are intended to drive meaningful revenue, help provide efficient and effective capital allocation and create low-risk opportunities for significant growth.

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) DocGo’s executive hiring processes were inadequate to fully review and vet the professional and academic backgrounds of job candidates; (ii) the foregoing increased the likelihood of disruptive executive turnover; (iii) contrary to its representations to investors, DocGo had overstated the efficacy of its mobile health and medical transportation services, the very services contemplated by the Relocation Contract; (iv) all of the foregoing, once revealed, was likely to subject DocGo to significant reputational and/or regulatory scrutiny that would negatively impact the Company’s financial position and/or prospects; and (v) as a result, the Companys public statements were materially false and misleading at all relevant times.

On July 30, 2023, the New York Times published an article reporting on a “rocky” start to DocGo’s migrant relocation efforts in New York City. The New York Times article reported that asylum-seekers have complained of threats and “broken promises” after New York City awarded DocGo the Relocation Contract. Specifically, the article stated that “[l]ocal authorities have expressed frustration at the lack of coordination between DocGo and agencies that could provide services to the migrants; local security guards hired by DocGo have repeatedly threatened the migrants; and finding steady work has been nearly impossible[.]”

DocGo’s $432 million contract nearly matches the Company’s total 2022 revenue of roughly $441 million. Following publication of the New York Times article, DocGo’s stock price fell $0.53 per share, or 6.29%, to close at $7.89 per share on July 31, 2023. Then, on August 22, 2023, the Albany Times Union published an article reporting that the New York Attorney General (“AG”) had opened an investigation into DocGo and cautioned the Company to cease limiting migrants’ speech or movement. Specifically, the AG’s Civil Rights Bureau sent a letter sent to DocGo’s attorneys detailing “serious concerns” it had regarding potential violations of state and federal laws in its handling of the Relocation Contract.

Then, on September 6, 2023, New York City Comptroller Brad Lander (“Comptroller Lander”) announced that his office was declining to approve the Relocation Contract. Comptroller Lander noted in a letter to Department of Housing & Preservation Development commissioner Adolfo Carrin Jr. that his decision to reject the Relocation Contract was “due to numerous outstanding concerns” including “[i]nsufficient budget detail to justify over $432 million in contract value,” “[i]nconclusive reasoning as to the selection of the vendor and contradictory statements about their fiscal ability to provide contracted services,” “[i]nadequate vendor responsibility determination, contract oversight and subsequent questions about proper service delivery,” and “[i]nadequate information regarding the selection of subcontractors.” Mayor Adams had the authority to proceed with the Relocation Contract over Comptroller Lander’s objections and ultimately did so.

On this news, DocGo’s stock price fell $0.61 per share, or 7.47%, to close at $7.55 per share on September 6, 2023. Then, on September 14, 2023, the Albany Times Union published an article reporting that Defendant Capone had falsified portions of his professional biography regarding his educational history.

On the following day, September 15, 2023, DocGo disclosed Capone’s resignation as CEO in a filing with the Securities and Exchange Commission. On this news, DocGo’s stock price fell $0.76 per share, or 11.76%, to close at $5.70 per share on September 15, 2023. Finally, on September 18, 2023, Comptroller Lander announced that his office was commencing a real-time audit of operations and invoices incurred by DocGo in connection with the Relocation Contract. Specifically, Comptroller Lander noted that his office has “serious concerns about the selection of this vendor and its performance of contract duties.”

On this news, DocGo’s stock price fell $0.41 per share, or 7.19%, to close at $5.29 per share on September 18, 2023.

*            *            *

If you purchased or otherwise acquired DocGo securities between November 8, 2022 and September 17, 2023, 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 DocGo lawsuit is December 26, 2023.

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