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Agilon Health Faces Securities Fraud Allegations in Investor Class Action Lawsuit


Lauren Miller

March 21, 2024 - 23:58 pm


Agilon Health Accused of Securities Fraud in Class Action Lawsuit

NEW YORK, March 21, 2024 /PRNewswire/ -- The prominent law firm of Bronstein, Gewirtz & Grossman, LLC, acclaimed on a national level, has recently brought to public attention the filing of a class action lawsuit against the medical company agilon health, inc. — commonly referred to as "agilon" or simply "the Company" — (NYSE: AGL) inclusive of some of their top-ranking officers.

Comprehensive Lawsuit Synopsis

Positioned as a bastion of legal justice for shareholders, Bronstein, Gewirtz & Grossman, LLC is reaching out to individuals and entities that engaged in the purchase or acquisition of agilon securities during a specified timeframe. This period, hereby defined as the "Class Period," spans from January 9, 2023, through to January 4, 2024. Furthermore, the lawsuit includes those who invested in connection with agilon's secondary public offering (SPO) around May 16, 2023. The law firm strongly encourages potential plaintiffs to learn more by visiting:

The Alleged Missteps of Agilon

Agilon, rooted in Austin, Texas, operates a health business model predicated on diminishing medical costs. Collaborating chiefly with Medicare Advantage plans alongside traditional Medicare and commercial managed care initiatives, agilon earns fixed monthly payments for every patient overseen. Although promising, this approach presents inherent financial risks because should patient care expenses eclipse the predetermined payments, agilon stands to suffer losses rather than reap profits.

Being able to predict utilization trends accurately is paramount for agilon. The underpinning of the firm's operations demands extensive analysis of healthcare usage data to devise and refine care plans and properly synchronize patient care with their network of partnered physicians. The company boasts an ongoing monitoring process of patient healthcare utilization, claiming it positions them to manage costs and deliver quality care vigilantly.

Uncovered Discrepancies and Investor Misguidance

During the Class Period and within the materials distributed for the SPO, it is alleged that the defendants consistently conveyed misinformation regarding the state of agilon's medical costs. Among the fallacies highlighted by the complaint are agilon's claimed oversight into trends and expenses, undisclosed increases in costs from heightened healthcare utilization, incorrect statements regarding incurred-but-not-reported (IBNR) reserve sufficiency, assurances over the potency of the business model, overly positive financial predictions, and the issuance of risk disclosures that underplayed actualized adverse situations as potential risks. These misleading statements and nondisclosures are alleged to have unjustly elevated agilon's stock prices, retailing at deceptive and artificially high rates.

The Eventual Emergence of Truth and Financial Fallout

The eventual unraveling began on November 2, 2023, as agilon disclosed disappointing figures for the third quarter, attributing this unanticipated downturn to increased utilization and associated medical costs. This news blindsided analysts, leading agilon to enlarge its IBNR Reserve retrospectively to mitigate for previous period healthcare outlays. These revelations had a consequential impact on agilon's stock price, which plummeted $2.23, or 13.2 percent, to close at $14.66 on November 3, 2023.

The subsequent bombshell dropped on January 5, 2024, as agilon rattled investors anew by slashing its profit estimates for 2023, pointing yet again to unforeseen high medical costs. This recalculation saw agilon’s projections for the 2023 Medical Margin and Adjusted EBITDA nosedive by upwards of $110 million and $73 million, respectively.

Immediate Aftermath and Stock Plunge

These updates sent shockwaves through the stock market, resulting in agilon shares taking a nosedive. The stock tumbled by $3.45, or 28.6 percent, to ultimately close day trading at a disheartening $8.63 on January 5, 2024. This significant drop signified a dramatic reversal of fortunes for investors who had previously seen agilon as a company on the rise.

The Path Forward for Affected Investors

Investors who have borne the brunt of these unforeseen events and suspect they have been misled by agilon currently have the opportunity to stand up and make their voices heard through legal channels. A class action lawsuit has been officially filed and is progressing. Those who wish to review the details of the Complaint can do so by visiting Furthermore, legal counsel is available as seasoned attorney Peretz Bronstein, Esq., along with Yael Nathanson, his Law Clerk and Client Relations Manager, invites affected parties to explore their options by contacting Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. For those intending to stake a claim in the potential class action recovery, they are advised to act by May 20, 2024, in order to be considered by the Court for appointment as a lead plaintiff.

No Financial Burden to Participate

The law firm wishes to assure potential plaintiffs that there are no upfront costs related to participating in the class action. The firm handles investor class actions on what is known as a contingency fee basis. Simply put, any and all requests for reimbursement of out-of-pocket expenses and attorneys' fees – generally derived as a fraction of the sum recovered – will only occur if the lawsuit ends favorably for the investors.

Bronstein, Gewirtz & Grossman: Advocates for Investors

Bronstein, Gewirtz & Grossman, LLC prides itself on its esteemed standing as an advocate for investors caught in the throes of securities fraud class actions and shareholder derivative suits. The firm’s distinguished track record features the recovery of hundreds of millions of dollars on behalf of investors across the United States, cementing their reputation as formidable guardians of investor rights.

Legal Consultation Contact Details

For further inquiries or to pursue legal counselling in connection with the agilon securities class action litigation, interested parties are directed to get in touch with:

Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Nathanson 332-239-2660 | [email protected]

In Conclusion

As the situation continues to unfold, the class action suit against agilon health, inc. serves as a sobering reminder of the crucial need for corporate transparency and accountability. Those affected are invited to explore their legal options and potentially join the unified front seeking redress for alleged securities law violations.

At the heart of the narrative is a battle not just for financial restitution but also for the restoration of faith in the financial markets, as both the legal community and investors press for answers and accountability.

Investors are urged to align with experienced legal professionals capable of navigating the intricacies of securities litigation. As the May 20, 2024, deadline approaches, prospective lead plaintiffs must decide on their involvement and take action towards pursuing possible compensation.

By offering no-cost involvement and standing on a foundation of success in securities fraud litigation, Bronstein, Gewirtz & Grossman, LLC positions itself as a potential ally for aggrieved investors demanding justice in the face of alleged corporate wrongdoings.

Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Nathanson 332-239-2660 | [email protected]

SOURCE: Bronstein, Gewirtz & Grossman, LLC

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