NEW YORK, NY / ACCESSWIRE / September 3, 2022 / Pomerantz LLP is investigating claims on behalf of investors of LifeStance Health Group, Inc. ("LifeStance" or the "Company") LFST. Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org 888-476-6529, ext. 7980.
The investigation concerns whether LifeStance and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On our around June 10, 2021, LifeStance conducted its initial public offering ("IPO"), selling 46 million shares of stock priced at $18.00 per share. On August 11, 2021, less than two months after the IPO, LifeStance announced its second quarter 2021 ("2Q21") financial results for the period ended June 30, 2021 (just days after the IPO), disclosing a net loss of $70 million, compared to net loss of just $27.6 million for the period from April 1, 2020 to May 14, 2020 and $4.3 million for the period from April 13, 2020 to June 30, 2020. Critically, during the 2Q21, the Company's operating expenses had more than tripled. LifeStance also guided for full fiscal year 2021 total revenue of just $668 million to $678 million ($168 million to $173 million in the third quarter 2021 and $196 million to $201 million in the fourth quarter 2021) and Adjusted EBITDA of just $47 million to $53 million ($8 million to $11 million in the third quarter 2021 and $12 million to $15 million in the fourth quarter 2021).
The Company also disclosed on August 11, 2021 that it had experienced a significant, negative "recent change in clinician retention levels" during the 2Q21.
Then, on November 8, 2021, the Company reported its third quarter 2021 results, now explaining in its press release that "[c]linician retention [had] stabilized to approximately 80% annualized in the third quarter." The Company further disclosed that LifeStance was also having to increase spending on "enhanced clinician engagement and continued support for workplace and work-life flexibility," i.e. lowering physician productivity, in order to keep its existing physicians. Since the IPO, LifeStance's stock price has fallen significantly, damaging investors.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
SOURCE: Pomerantz LLP
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