February 25, 2021 - A consolidated complaint was filed.

September 21, 2020 - An investor in shares of GoHealth, Inc. (NASDAQ: GOCO) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by GoHealth, Inc. in connection with certain allegedly false and misleading statements made in connection with GoHealth’s July 2020 initial public offering (the IPO ).

Chicago, IL based GoHealth, Inc. operates a health insurance marketplace to enhance access to healthcare in the United States.

On or about July 15, 2019, GoHealth, Inc. sold about 43.5 million shares of stock in its initial public stock offering (the IPO ), at $21.00 a share raising nearly $914 million in new capital.

On August 21, 2020, shares of GoHealth, Inc. (NASDAQ: GOCO) closed at $15.97.

On August 19, 2020, GoHealth, Inc, in its first quarterly earnings report following the IPO, announced it incurred a 2Q net loss of $22.9 million after posting net income of $15.3 million in the prior-year period. Shares of GoHealth, Inc. (NASDAQ: GOCO) declined to as low as $12.91 per share on August 27, 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of GoHealth, Inc. (NASDAQ: GOCO) common shares, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the Registration Statement failed to disclose that at the time of the IPO: (i) the Medicare insurance industry was undergoing a period of elevated churn, which had begun in the first half of 2020; (ii) GoHealth suffered from a higher risk of customer churn as a result of its unique business model and limited carrier base; (iii) GoHealth suffered from degradations in customer persistency and retention as a result of elevated industry churn, vulnerabilities that arose from the Company’s concentrated carrier business model, and GoHealth’s efforts to expand into new geographies, develop new carrier partnerships and worsening product mix; (iv) GoHealth had entered into materially less favorable revenue sharing arrangements with its external sales agents; and (v) these adverse financial and operational trends were internally projected by GoHealth to continue and worsen following the IPO.