An investor, who purchased shares of Evolent Health, Inc. (NYSE: EVH), filed a lawsuit in August 2019 over alleged violations of Federal Securities Laws by Evolent Health, Inc..
Investors who purchased shares of Evolent Health, Inc. (NYSE: EVH) have certain options and for certain investors are short and strict deadlines running. Deadline: October 7, 2019. NYSE: EVH investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
Arlington, VA based Evolent Health, Inc., through its subsidiary, Evolent Health LLC, provides health care delivery and payment solutions in the United States. By the end of 2018, Evolent Health, Inc had contractual relationships with over 35 operating partners. Many of these “partners” were either related parties, or companies in which Evolent had significant ownership or had provided financing at the onset of the relationship. Evolent’s largest and most important partner was University Health Care, Inc., d/b/a Passport Health Plan, which represented 20% of the Company’s revenues.
Then on May 29, 2019, Evolent Health, Inc announced that it was buying a controlling interest in Passport, which was essentially a bailout of the financially distressed health plan. Evolent Health, Inc acquired Passport despite previously stating that it had no intention of buying Passport or any other health plans for the foreseeable future, and that acquiring health plans was not part of its strategic focus. In addition, Evolent Health, Inc admitted that University Health Care, Inc., d/b/a Passport Health Plan was performing poorly and was not being run or managed properly, despite paying massive management fees to Evolent for what was previously understood by investors to be an aligned relationship.
On August 8, 2019, a lawsuit was filed against Evolent Health, Inc over alleged Securities Laws Violations. The plaintiff alleged that the defendants mispresented and failed to disclose that Evolent’s partnership model did not align the Company’s interests with those of its partners, as the model was designed to inflate the Company’s revenue by extracting enormous administrative and management fees at the expense of its operating partners such as Passport, that Passport was struggling financially, particularly after Kentucky cut its reimbursement rates, and the partnership between Evolent and University Health Care, Inc., d/b/a Passport Health Plan was becoming increasingly unsustainable, that Evolent was draining Passport of functions, employees and money, to such an extent that University Health Care, Inc., d/b/a Passport Health Plan was left on the verge of insolvency, that University Health Care, Inc., d/b/a Passport Health Plan t was conducting a bidding process for several months to sell itself to prevent liquidation, and that as a result of the foregoing, Defendants’ public statements were materially false and/or misleading and/or lacked a reasonable basis.
On January 10, 2020 an amended Complaint was filed and on June 8, 2020, a second amended Complaint was filed. On June 22, 2020, the defendants filed a Motion to Dismiss the second amended Complaint.
On March 24, 2021, the Court issued an Order granting in part and denying in part Defendants’ Motion to Dismiss.
Those who purchased shares of Evolent Health, Inc. (NYSE: EVH) have certain options and should contact the Shareholders Foundation.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.