INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of LifeStance Health Group, Inc. (NASDAQ: LFST) Shareholders
NEWTOWN, PA, August 12, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of LifeStance Health Group, Inc. (“LifeStance” or the “Company”) (NASDAQ: LFST) common stock issued in connection with LifeStance’s June 10, 2021, initial public stock offering (the “IPO”). This securities class action is seeking to pursue remedies under the Securities Act of 1933.
Investors who purchased LifeStance Health Group, Inc. common stock during the Class Period may move the U.S. District Court for the Southern District of New York to appoint them as lead plaintiff, no later than October 11, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 1-844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed on Edelson Lechtzin LLP’s website at www.edelson-law.com or HERE
Background on the LifeStance Health Group, Inc. Securities Class Action
LifeStance Health is a mental healthcare company that focuses on providing outpatient treatment services for children, adolescents, and adults both in-person and through digital telemedicine. At the time of its IPO, LifeStance employed roughly 3,300 psychiatrists, advanced practice nurses, psychologists, and therapists across 27 different states.
The Complaint alleges that LifeStance made false and/or misleading statements in its IPO Registration Statement. Specifically, the Registration Statement failed to disclose that: (i) as the COVID-19 lockdowns were being lifted, the number of virtual visits with clients was decreasing, which halted the Company’s out-patient/virtual revenue growth; (ii) the percentage of in-person visits with clients utilizing LifeStance was increasing as COVID-19 lockdowns were being lifted, which substantially increasing LifeStance’s operating expenses; (iii) due to burnout, LifeStance lost a substantial number of physicians and the Company’s physician retention rate fell significantly below the 87% figure highlighted in the Registration Statement; (iv) LifeStance was incurring additional costs to onboard new physicians who were less productive than the ones they were replacing; and (v) as a result of the foregoing, LifeStance’s business metrics and financial prospects were not as strong as the Registration Statement described.
At the time the LifeStance Health Group lawsuit was filed, LifeStance’s common stock trades in a range of $4.77-$7.70, a reduction of upwards 73% from the IPO price.
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]