agilon health, inc. Investors

May 20, 2024 Filing Deadline in Securities Class Action - Contact Kessler Topaz Meltzer & Check, LLP - Seite 2

Investors began to learn the truth about the cost pressures impacting agilon’s medical margin and profitability on November 2, 2023, when the Company announced its third quarter 2023 financial results after the market closed. Critically, agilon reported a net loss of $31 million for the third quarter of 2023 and slashed its fiscal year 2023 medical margin to a range between $455 million and $470 million. Defendant Sell also assured investors that agilon’s more conservative approach to guidance “should reduce the risk of negative claims development next year.” On this news, the price of agilon common stock declined $3.78 per share, or more than 22% over two trading-days, from a close of $16.89 per share on November 2, 2023, to close at $13.11 per share on November 6, 2023.

After several additional disclosures in November 2023, investors more fully learned the truth about the cost pressures on agilon’s medical margin and profitability before the market opened on January 5, 2024, when agilon updated its fiscal year 2023 financial results and provided its initial outlook for 2024. Critically, agilon further slashed its 2023 medical margin guidance more than $100 million, to a range between $340 million and $360 million, due to “higher-than-expected medical costs.” This represented a decline of more than 34% from the $550 million in medical margin it had predicted. On the related investor guidance call, Defendant Sell acknowledged that agilon “failed to recognize these elevated cost trends” and had “a data and analytics gap that led to [the Company] being late in both recognizing the magnitude and source of the utilization shifts.” Defendant Sell further indicated that the increased cost trends were expected to persist through 2024. Also on January 5, 2024, Defendant Bensley announced that he would retire in 2024. On this news, the price of agilon common stock plummeted $3.45 per share, or nearly 29%, from a close of $12.08 per share on January 4, 2024, to close at $8.63 per share on January 5, 2024.

Finally, on February 27, 2024, agilon disclosed that its 2023 medical margin had in fact come in at just $299 million for the year – far lower than the range of $340 million to $360 million provided just a few weeks prior. Furthermore, agilon slashed its 2024 medical margin guidance by 27%. On this news, the price of agilon common stock dropped from $6.48 per share when the market closed on February 27, 2024, to $6.04 per share on March 1, 2024, a 7% decline on abnormally heavy volume of a three-day period. In subsequent days, the price of agilon stock continued to decline, falling to a low of just $5.66 per share on March 6, 2024, more than 85% below the Class Period high.