The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of LifeStance Health Group, Inc. (NASDAQ: LFST) who purchased common stock pursuant and/or traceable to the documents issued in connection with LifeStance’s June 10, 2021 initial public stock offering. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the LifeStance lawsuit alleges that (i) the number of virtual visits clients were undertaking utilizing LFST was decreasing as the COVID-19 lockdowns were being lifted, thereby flatlining LFST’s out-patient/virtual revenue growth; (ii) the percentage of in-person visits clients were undertaking utilizing LFST was increasing as the COVID-19 lockdowns were being lifted, thereby causing LFST’s operating expenses to increase substantially; (iii) LFST 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 initial public offering’s registration statement, and LFST had been expending additional costs to onboard new physicians who were less productive than the outgoing physicians they were replacing; and (iv) as a result, LFST’s business metrics and financial prospects were not as strong as the initial public offering’s registration statement represented.
Shareholders have until October 11, 2022 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.