Kehoe Law Firm, P.C.
GoodRx Class Action Investigation On Behalf of GDRX Investors
FLORIDA, USA, December 21, 2020 /EINPresswire.com/ — Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of GoodRx Holdings, Inc. (“GoodRx” or the “Company”) (NASDAQ: GDRX) to determine whether the Company engaged in securities fraud or other unlawful business practices.
GOODRX INVESTORS WHO PURCHASED, OR OTHERWISE ACQUIRED, THE COMPANY’S SECURITIES BETWEEN SEPTEMBER 23, 2020 AND NOVEMBER 16, 2020, BOTH DATES INCLUSIVE (THE “CLASS PERIOD”), AND SUFFERED LOSSES GREATER THAN $50,000 ARE ENCOURAGED TO CONTACT MICHAEL YARNOFF, ESQ., (215) 792-6676, EXT. 804, MYARNOFF@KEHOELAWFIRM.COM, SECURITIES@KEHOELAWFIRM.COM, INFO@KEHOELAWFIRM.COM, TO DISCUSS THE SECURITIES CLASS ACTION INVESTIGATION OR POTENTIAL LEGAL CLAIMS.
A class action lawsuit has been filed seeking to recover damages on behalf of GoodRx investors who purchased, or otherwise acquired, GoodRx securities during the Class Period and suffered losses.
According to the class action complaint, at the time of GoodRx’s September 2020 Initial Public Offering (“IPO”), unbeknownst to investors, Amazon.com, Inc. (“Amazon”) was developing and would soon introduce its own online and mobile prescription medication ordering and fulfillment service that would directly compete with GoodRx.
The complaint alleges that the GoodRx Defendants timed the IPO so that it was priced before Amazon announced its online pharmaceutical business to facilitate the IPO and create artificial demand for the common shares sold therein, as well to maximize the amount of money the Company and the selling stockholders could raise in the IPO. Given the GoodRx Defendants’ knowledge of Amazon’s intention to enter the online pharmaceutical business, and their misleading statements about GoodRx’s competitive position made contemporaneously with that knowledge, the GoodRx Defendants’ allegedly made materially false and/or misleading statements and caused GoodRx common stock to trade at artificially inflated prices during the Class Period.
The class action complaint alleges that on November 17, 2020, just weeks after GoodRx completed its IPO, Amazon announced two new pharmacy offerings, a Prime Rx plan and a discount card program, which, among other things, would compete directly with GoodRx’s platform by making it “simple for customers to compare prices and purchase medications for home delivery, all in one place.”
On this news, according to the complaint, the price of GoodRx common stock declined 23%, from $46.72 per share to $36.21 per share by the close of the market on November 17, 2020, erasing more than $4 billion of GoodRx’s market capitalization, thereby damaging GoodRx investors.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.
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Michael Yarnoff, Esq.
Kehoe Law Firm, P.C.