Bronstein, Gewirtz & Grossman LLC

NEW YORK, May 9, 2024 (GLOBE NEWSWIRE) — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, informs investors that a class action lawsuit has been filed against agilon Health, Inc. (“agilon” or “the Company”) (NYSE: AGL) and certain of its officers.

Class definition:

The purpose of this lawsuit is to recover damages against defendants for alleged violations of the federal securities laws on behalf of all individuals and entities that purchased or otherwise acquired Agilon securities: (1) between January 9, 2023 and January 4, 2024, both dates inclusive (the “Lesson”); or (2) pursuant to the materials issued in connection with the Company’s Secondary Public Offering (“SPO”) on or about May 16, 2023. Such investors are encouraged to join this case by visiting the Company’s website: bgandg.com/AGL.

Case details:

According to the lawsuit, agilon, headquartered in Austin, Texas, generates profits by reducing medical expenses. By primarily partnering with Medicare Advantage (“MA”) plans as well as traditional Medicare and commercial managed care organizations, agilon receives a fixed monthly payment from payers for each patient it serves. In return, agilon assumes responsibility for managing the overall costs and quality of care for these patients. This model incentivizes agilon and its contractors to focus on prevention and improving health outcomes to control costs. If the total cost of patient care is less than the fixed payments agilon receives, it makes a profit. However, if the costs exceed the payments, agilon incurs a loss. This aspect of financial risk is inherent in agilon’s business model.

It is crucial for agilon to have clear insight into usage trends over time. The company’s business model is based on analyzing this data to develop evidence-based care plans and coordinate patient care with its partner physicians. agilon says it continuously tracks patients’ healthcare utilization, allowing its teams to actively manage the cost and quality of care. The ability to accurately predict utilization and adjust clinical programs accordingly is critical to agilon’s goal of reducing costs and generating profits.

The lawsuit alleges that throughout the Class Period and in the SPO materials, defendants misled investors about agilon’s medical costs by:

(1) touting the company’s purported transparency regarding usage trends and medical costs;

(2) failure to disclose increased medical costs incurred by Agilon prior to and during the Class Period due to increased health care utilization by MA patients;

(3) falsely stating that the incurred but unreported reserve (IBNR) was sufficient;

(4) make false or misleading statements about the effectiveness of its business model;

(5) providing an overly optimistic financial forecast; And

(6) Disclosures of risks that were materially false and misleading because they characterized adverse facts that had already occurred as mere possibilities.

Because of these materially false and misleading statements and omissions, the lawsuit alleges, agilon’s shares traded at artificially high prices during the Class Period by misleading investors into believing that the company’s medical costs were lower than represented. In May 2023, Defendants took advantage and profited enormously by selling hundreds of millions of their Agilon shares through the SPO at the inflated price of $21.50 per share.

The truth about the higher medical costs faced by agilon came to light on November 2, 2023, according to the complaint. On that day, agilon reported lower-than-expected results for the third quarter of 2023 due to increased utilization and medical costs. Defendants also lowered the company’s full-year 2023 revenue guidance and informed investors that Agilon had increased its IBNR reserve, to account for medical expenses from prior periods. These results surprised analysts.

On this news, agilon’s share price fell $2.23, or 13.2 percent, to close at $14.66 on November 3, 2023.

On January 5, 2024, agilon once again surprised investors by lowering its 2023 profit forecasts. In particular, the company reduced its 2023 medical margin and adjusted EBITDA guidance, citing higher-than-expected medical costs. Specifically, agilon reduced its 2023 medical margin and adjusted EBITDA forecasts by more than $110 million and $73 million, respectively.

On this news, agilon shares fell $3.45, or 28.6 percent, to close at $8.63 on January 5, 2024.

What’s next?

A class action lawsuit has already been filed. If you would like to review a copy of the Complaint, you may visit the Company’s website: bgandg.com/AGL or you may contact Peretz Bronstein, Esq. turn around. or his law clerk and client relations manager Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered damages with agilon, you have until May 20, 2024 to ask the court to appoint you as lead plaintiff. Your ability to share in the recovery does not require you to serve as lead plaintiff.

There are no costs for you

We represent investors in class actions on a contingency fee basis. This means that we will only ask the court to reimburse us for our expenses and attorneys’ fees, usually a percentage of the total recovery, if we are successful.

Why Bronstein, Gewirtz & Grossman:

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm representing investors in securities fraud class actions and shareholder derivative litigation. Our company has recovered hundreds of millions of dollars for investors nationwide.

Lawyer advertising. Previous results do not guarantee similar results.

Contact:

Bronstein, Gewirtz & Grossman, LLC

Peretz Bronstein or Yael Nathanson

332-239-2660 | [email protected]