Trending...
- Turnstone Creative Welcomes Giovanni Amodei as Manager of Strategic Growth
- American Garden Rose Selections™ Announces 2027 Winners
- ResC4EU Final Event at KOMPOZYT-EXPO 2026 – Building Resilient European Supply Chains
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased LifeStance Health Group, Inc. ("LifeStance" or the "Company") (NASDAQ: LFST) common stock pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with LifeStance's June 10, 2021 initial public stock offering (the "IPO"). LifeStance investors have until October 11, 2022 to file a lead plaintiff motion.
Investors suffering losses on their LifeStance investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On or about June 11, 2021, LifeStance conducted its IPO, issuing 46 million shares at $18 per share.
On August 11, 2021, LifeStance announced its financial results for second quarter 2021, which ended just days after the IPO. The Company reported a net loss of $70 million and also disclosed that its operating expenses had more than tripled during the second quarter. LifeStance stated that it had experienced a significant, negative "recent change in clinician retention levels."
On this news, the Company's stock price fell $10.16, or 46%, to close at $11.71 per share on August 12, 2021, thereby injuring investors.
More on The PennZone
Then, on November 8, 2021, LifeStance released its third quarter 2021 financial results, disclosing that "[c]linician retention [had] stabilized to approximately 80% annualized in the third quarter," and that the Company was having to increase spending on "enhanced clinician engagement and continued support for workplace and work-life flexibility."
On this news, the Company's stock price fell $3.10, or 24%, to close at $9.73 per share on November 9, 2021, thereby injuring investors further.
Then, on March 10, 2022, LifeStance reported its fiscal 2021 results, stating that a recent study had shown that three quarters of mental health patients prefer in-person services and that through 2021, telehealth services trended downwards. Additionally, the Company stated that it would be reducing the number of brick and mortar facilities that it would be building in the immediate future in order to increase its profitability.
At the time the complaint was filed, LifeStance's common stock has traded as much as 73% below than the IPO price.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the number of virtual visits clients were undertaking utilizing LifeStance was decreasing as the COVID-19 lockdowns were being lifted, thereby flatlining the Company's out-patient/virtual revenue growth; (2) that the percentage of in-person visits clients were undertaking utilizing LifeStance was increasing as the COVID-19 lockdowns were being lifted, thereby causing the Company's operating expenses to increase substantially; (3) that LifeStance had lost a large number of physicians due to burn-out and, as a result, its physician retention rate had fallen significantly below the 87% highlighted in the Registration Statement and the Company had been expending additional costs to onboard new physicians who were less productive than the outgoing physicians they were replacing; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
More on The PennZone
If you purchased LifeStance common stock, have information or 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
Investors suffering losses on their LifeStance investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On or about June 11, 2021, LifeStance conducted its IPO, issuing 46 million shares at $18 per share.
On August 11, 2021, LifeStance announced its financial results for second quarter 2021, which ended just days after the IPO. The Company reported a net loss of $70 million and also disclosed that its operating expenses had more than tripled during the second quarter. LifeStance stated that it had experienced a significant, negative "recent change in clinician retention levels."
On this news, the Company's stock price fell $10.16, or 46%, to close at $11.71 per share on August 12, 2021, thereby injuring investors.
More on The PennZone
- Champions for Education to Honor United Way of the Greater Lehigh Valley and Induct Three Leaders
- Holiday Gambling Spending Expected to Rise 12% in December
- RAS AP Consulting Issues National Compliance Alert and Launches Q4 2026 AP Readiness Program Ahead of IRS FIRE → IRIS Cutover
- Free Senior Housing Webinar Helps Families Plan for Aging Before a Crisis Forces Difficult Decisions
- Claude Zdanow named Managing Director in Miami, Florida
Then, on November 8, 2021, LifeStance released its third quarter 2021 financial results, disclosing that "[c]linician retention [had] stabilized to approximately 80% annualized in the third quarter," and that the Company was having to increase spending on "enhanced clinician engagement and continued support for workplace and work-life flexibility."
On this news, the Company's stock price fell $3.10, or 24%, to close at $9.73 per share on November 9, 2021, thereby injuring investors further.
Then, on March 10, 2022, LifeStance reported its fiscal 2021 results, stating that a recent study had shown that three quarters of mental health patients prefer in-person services and that through 2021, telehealth services trended downwards. Additionally, the Company stated that it would be reducing the number of brick and mortar facilities that it would be building in the immediate future in order to increase its profitability.
At the time the complaint was filed, LifeStance's common stock has traded as much as 73% below than the IPO price.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the number of virtual visits clients were undertaking utilizing LifeStance was decreasing as the COVID-19 lockdowns were being lifted, thereby flatlining the Company's out-patient/virtual revenue growth; (2) that the percentage of in-person visits clients were undertaking utilizing LifeStance was increasing as the COVID-19 lockdowns were being lifted, thereby causing the Company's operating expenses to increase substantially; (3) that LifeStance had lost a large number of physicians due to burn-out and, as a result, its physician retention rate had fallen significantly below the 87% highlighted in the Registration Statement and the Company had been expending additional costs to onboard new physicians who were less productive than the outgoing physicians they were replacing; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
More on The PennZone
- YWCA Hanover Celebrates Opening of New Children's Learning Academy
- Pregis Launches Sharp InfinX: On-Demand Rightsized Mailing System Delivering a Precision-Sized Mailer for Every Order
- netElastic Announces vBNG And CGNAT 2.0 General Availability
- Postmortem Pathology Highlights Private Autopsy Options for Las Vegas Families During Summer Months
- Postmortem Pathology Offers Sacramento Families Independent Answers on a Short Timeline
If you purchased LifeStance common stock, have information or 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
0 Comments
Latest on The PennZone
- Guardian Data Opens 42,000-Square-Foot Moonachie Facility, Doubling New Jersey Capacity
- Dutch Mill Bulbs Launches Pink Ribbon Tulip Fundraise ~ National Breast Cancer Foundation, Inc.®
- SecureMaine 2026 is Here -- Thursday October 8th!
- Bluestone Laundromat Makes a Difference in the Archbald Community
- HW Foundation Opens Nominations for Inaugural 50 Under 50 in AI; Deadline Oct. 16
- Pavillon 30 Years of Addiction Recovery in Western North Carolina, Earns National Accreditation
- ResC4EU Final Event at KOMPOZYT-EXPO 2026 – Building Resilient European Supply Chains
- BJJ App mmaGPT Expands Academy Program to Support Jiu-Jitsu Instructors with AI Technique Coaching
- Ten Ten Ten Announces Maximizing Clinical Operations
- Turnstone Creative Welcomes Giovanni Amodei as Manager of Strategic Growth
- CardsNearby Launches Free Nationwide Directory of Card Shows and Local Card Shops for Collectors
- American Garden Rose Selections™ Announces 2027 Winners
- Crossroads4Hope Launches Blood Cancer Resource Hub
- Wilson Venture Capital to Launch News Organization; Will Name Trevor Wilson CEO
- NIL Club Data Shows Brands Are Looking Beyond Follower Counts in College Sports
- Georgia's Magical Nights of Lights Bigger and Brighter for 2026
- Bicentennial Occult Outing Alternative History Video Series Launches for Spooky Season
- Harvard Educated Board Certified Endodontist Joins Pearlfection Dentistry
- NYC Banners Delivers High-Stakes UN General Assembly Backdrop for the US Department of State Event
- OneVizion Appoints Energy Infrastructure Executive Walt Farrell to Board of Directors