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Bright Health Group, Inc.

The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired (a) Bright Health Group, Inc. (“Bright Health” or the “Company”) (NYSE: BHG) (a) common stock pursuant and/or traceable to the Company’s initial public offering conducted on or about June 24, 2021 (the “IPO” or “Offering”); and/or (b) Bright Health securities between June 24, 2021 and November 10, 2021, both dates inclusive (the “Class Period”). Investors have until March 7, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Bright Health is an integrated care delivery company that engages in the delivery and financing of health insurance plans in the U.S. The Company operates in two segments— NeueHealth and Bright HealthCare. Bright Health offers individual and family, Medicare, and employers insurance plans. The Company also operates 28 managed and affiliated risk-bearing primary care clinics.
On May 19, 2021, Bright Health filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after several amendments, was declared effective by the SEC on June 23, 2021 (the “Registration Statement”). On June 25, 2021, Bright Health filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, together with the Registration Statement, the “Offering Documents”).
On November 11, 2021, Bright Health reported its third quarter 2021 results. Among other results, Bright Health reported earnings per share (“EPS”) of -$0.48 as calculated under U.S. generally accepted accounting principles (“GAAP”), missing consensus estimates by $0.31. Bright Health also reported a sharp rise in in the Company’s medical cost ratio (“MCR”), advising investors that its MCR “for the third quarter of 2021 was 103.0%, which includes a 540 basis point unfavorable impact from COVID-19 related costs and a 900 basis point unfavorable impact primarily from a cumulative reduction in premium revenue due to an inability to capture risk adjustment on newly added lives.” On this news, Bright Health’s stock price declined by $2.36 per share, or approximately 32.33%, from $7.3 [CK1] per share to close at $4.94 per share on November 11, 2021.
The lawsuit alleges throughout the Class Period, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) Bright Health had overstated its post-IPO business and financial prospects; (ii) the Company was ill-equipped to handle the impact of COVID-19-related costs; (iii) the Company was experiencing a decline in premium revenue because of a failure to capture risk adjustment on newly added lives; (iv) all the foregoing was reasonably likely to have a material negative impact on Bright Health’s business and financial condition; and (v) as a result, the Offering Documents and Defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.

Bright Health Group, Inc. Investor Contact Form