Case Summary

GoodRx

NASDAQ: GDRX

Case Details

  • Barsuli v. GoodRx Holdings, Inc. et al.
  • Class Period:September 23, 2020 - November 8, 2022
  • Date Filed:April 22, 2024
  • Jurisdiction:U.S. District Court, Central District of California
  • Docket Number: 2:24-cv-03282
  • Lead Plaintiff Deadline: June 21, 2024
Days Left to
Seek Plaintiff
27

Overview

A class action lawsuit has been filed against GoodRx Holdings, Inc. (“GoodRx” or the “Company”) (NASDAQ: GDRX) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The GoodRx lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired GoodRx common stock between September 23, 2020 and November 8, 2022, both dates inclusive (the “Class Period”), and investors have until June 21, 2024 to seek appointment as lead plaintiff of the GoodRx class action lawsuit.

GoodRx operates a price comparison platform for prescription drugs which, in many cases, offers consumers access to lower prices (through discount codes and coupons) for their medications.  GoodRx generates most of its revenue from contracts with pharmacy benefit managers (“PBMs”) who agree to pay GoodRx a commission on prescription drug purchases made by consumers who use GoodRx’s discount codes and coupons at participating pharmacies.  GoodRx also generates a portion of its revenue from subscription plans like the “Kroger Rx Savings Club,” which provides access to lower prescription prices at pharmacies operated by The Kroger Co. (“Kroger”).

In connection with GoodRx’s initial public offering on September 23, 2020, and throughout the remainder of the Class Period, Defendants continuously touted the Company’s strong relationships with pharmacies as a significant element of its business plan.  Among other things, GoodRx repeatedly highlighted the Kroger Rx Savings Club.  Critically, however, Defendants never informed investors of the material risk that Kroger, which accounted for nearly 25% of GoodRxs prescription transactions revenue, could unilaterally refuse to accept GoodRxs discounts.

On May 9, 2022, investors began to learn the truth about the risks of GoodRx’s over-dependence on Kroger (including the risk that, notwithstanding the Kroger Rx Savings Club, Kroger could unilaterally refuse to accept GoodRx’s discounts), when GoodRx revealed that, late in the first quarter of 2022, “a grocery chain had taken actions that impacted acceptance of discounts from most PBMs for a subset of drugs and that this impacted the acceptance of many PBM discounts for certain drugs at this grocer’s stores.”  GoodRx further acknowledged that this disruption could have an estimated revenue impact of roughly $30 million in the second quarter of 2022, resulting in the Company announcing disappointing second quarter 2022 revenue guidance of only about $190 million.  While Defendants refused to identify the grocer by name, analysts and media outlets quickly recognized that the unnamed grocery chain was Kroger.  On this news, the price of GoodRx common stock plummeted $2.78 per share, or more than 25%, from a close of $10.75 per share on May 9, 2022, to close at $7.97 per share on May 10, 2022.

On November 8, 2022, Defendants provided further information on the severity of the revenue impact from the Kroger disruption with the Company, estimating that the impact of the grocer issue on third quarter prescription transactions revenue was approximately $40 million and that the Company expected a combined $45 million to $50 million estimated impact to prescription transactions revenue for the fourth quarter of 2022.  Defendants further acknowledged that the Company was seeking to enter into contractual relationships with pharmacies to prevent similar disruptions from occurring in the future.  On this news, the price of GoodRx common stock declined an additional $1.18 per share, or more than 22%, from a close of $5.24 per share on November 8, 2022, to close at $4.06 per share on November 9, 2022.

*          *          *

If you purchased or otherwise acquired GoodRx common stock between September 23, 2020 and November 8, 2022, 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 GoodRx lawsuit is June 21, 2024.

Join This Action

Name(Required)
Address(Required)
Are you a current or former employee at the company?(Required)

Purchases

Purchases Buy Date Quantity Purchase Price per share or security Actions
       

Sales

Sale Type Sale Date Quantity Sale Price per share or security Actions
       

Upload Documents

Drop files here or
Accepted file types: xls, xlsx, doc, pdf, jpg, jpeg, Max. file size: 50 MB, Max. files: 5.