The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of those who acquired Oak Street Health, Inc. (“Oak Street” or the “Company”) (NYSE: OSH) securities from August 6, 2020 through November 8, 2021, inclusive (the “Class Period”). Investors have until March 14, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Oak Street operates primary care centers within the United States. Oak Street “engages Medicare eligible patients through the use of an innovative community outreach approach.”
On November 8, 2021, Oak Street filed its third quarter quarterly report with the United States Securities and Exchange Commission (“SEC”) on Form 10-Q for the quarter ended September 30, 2021. Therein, the Company, in relevant part, disclosed that on November 1, 2021 the Company received a civil investigative demand (“CID”) from the United States Department of Justice (“DOJ”). According to the CID, the DOJ was investigating whether the Company violated the False Claims Act. The CID also requests documents and information related to Oak Street’s relationships with “third-party marketing agents” and Oak Street’s “provision of free transportation to federal health care beneficiaries.” On this news, the Company’s stock price declined by $9.75 per share, or approximately 20.79%, from $46.89 per share to close at $37.14 per share on November 9, 2021.
The lawsuit alleges throughout the Class Period, Defendants made materially false and/or misleading statements and failed to disclose to investors that: (1) Oak Street maintained relationships with third-party marketing agents likely to provoke law enforcement scrutiny; (2) Oak Street was providing free transportation to federal health care beneficiaries in a manner that would provoke law enforcement scrutiny; (3) these activities may be violations of the False Claims Act; (4) as such, Oak Street was at a heightened risk of investigation by the DOJ and/or other federal law enforcement agencies; (5) as a result, Oak Street was subject to adverse impacts related to defense and settlement costs and diversion of management resources; and (6) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Oak Street securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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