|Company name||Evolent Health, Inc.|
|Class period||March 3, 2017 to May 28, 2019|
|Court||Eastern District of Virginia|
NEW YORK, August 26, 2019 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia on behalf of all investors that purchased Evolent Health, Inc. (NYSE: EVH) securities between March 3, 2017 and May 28, 2019 (the “Class Period”). Investors have until October 7, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The complaint, filed on August 8, 2019, alleges that during the Class Period, defendants issued a series of false and/or misleading statements and failed to disclose material adverse facts about Evolent’s business, operations, and prospects, including Evolent’s “partnership” with Passport specifically. Among other things, defendants mispresented and failed to disclose that: (1) 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; (2) Passport was struggling financially, particularly after Kentucky cut its reimbursement rates, and the partnership between Evolent and Passport was becoming increasingly unsustainable; (3) Evolent was draining Passport of functions, employees and money, to such an extent that Passport was left on the verge of insolvency; (4) Passport was conducting a bidding process for several months to sell itself to prevent liquidation; and (5) as a result of the foregoing, defendants’ public statements were materially false and/or misleading and/or lacked a reasonable basis.
Ultimately, on May 29, 2019, Evolent shocked investors when it unexpectedly announced that it was buying a controlling interest in Passport, which was essentially a bailout of the financially distressed health plan. Evolent 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 admitted that Passport 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. In reaction to these disclosures, Evolent’s stock price plummeted nearly 30%, to close at $10.10 on May 29, 2019.
If you purchased Evolent securities during the Class Period or continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.