Faruqi & Faruqi, LLP is investigating claims on behalf of GoodRx investors

NEW YORK, May 10, 2024 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating and reminds investors of potential claims against GoodRx Holdings, Inc. (“GoodRx” or the “Company”) (NASDAQ: GDRX). June 21, 2024 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

James (Josh) Wilson, Faruqi and Faruqi, LLP Securities Litigation Partner, encourages investors who have suffered losses that are greater $100,000 At GoodRx, you can contact them directly to discuss your options.

If you have suffered losses that go beyond this $100,000 Investing in GoodRx stocks or options in between September 23, 2020And November 8, 2022 and would like to discuss your legal rights, Call Faruqi & Faruqi Partners Josh Wilson direct at 877-247-4292 or 212-983-9330 (ext. 1310). For more information you can also click here: www.faruqilaw.com/GDRX.

Faruqi & Faruqi is a leading national securities law firm with offices in new York, Pennsylvania, California And Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As described below, the complaint claims that the Company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose: (1) While Kroger represented less than 5% of the pharmacies that accepted GoodRx discounts, Kroger was responsible for nearly 25% of GoodRx’s total prescription transaction revenue (the Company’s primary source of revenue); and (2) Kroger could unilaterally stop accepting GoodRx discounts, thereby reducing some or all of GoodRx’s revenue for purchases at Kroger’s pharmacies; and (3) as a result, defendants’ representations about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

At May 9, 2022When GoodRx revealed this late in the first quarter, investors began to learn the truth about the risks of GoodRx’s over-reliance on Kroger (including the risk that Kroger could unilaterally refuse to accept GoodRx’s discounts regardless of Kroger Rx Savings Club). . In 2022, “a grocery chain had taken actions that affected the acceptance of most PBMs’ discounts for a subset of medications” and that this “affected the acceptance of many PBM discounts for certain medications at that grocer’s stores.” GoodRx also acknowledged that this disruption “could have an estimated impact on sales 30 million dollars“in the second quarter of 2022 – which resulted in the company issuing a disappointing sales forecast for the second quarter of 2022 of only approx 190 million dollars. While the defendants declined to name the grocer, analysts and media outlets quickly identified 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 closing price of $10.75 per share May 9, 2022to close $7.97 per share May 10, 2022.

At November 8, 2022The defendants provided further information on the severity of the revenue impact of the Kroger disruption – with the company estimating that the “third quarter impact of the grocer issue (prescription transaction sales) was approximately.” 40 million dollars“and that the company expected “a combined one.” 45 million dollars To 50 million dollars “Estimated Impact on Prescription Transaction Revenue” for the Fourth Quarter of 2022. Defendants further acknowledged that the Company wanted 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 continued to decline $1.18 per share, or more than 22%, from a closing price of $5.24 per share November 8, 2022to close $4.06 per share November 9, 2022.

The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, who is appropriate and typical of the class, and who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may request the Court to serve as lead plaintiff through counsel of their choice, or may elect to do nothing and remain an absent class member. Your ability to share in any recovery will not be affected by the decision to serve as lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information about GoodRx’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.

To find out more about the GoodRx Class action lawsuit, go for it www.faruqilaw.com/GDRX or Call Faruqi & Faruqi Partners Josh Wilson direct at 877-247-4292 or 212-983-9330 (ext. 1310).

Lawyer advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar result with respect to future matters. We welcome the opportunity to discuss your individual case. All communications will be treated confidentially.

SOURCE Faruqi & Faruqi, LLP