The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia on behalf of those who acquired Evolent Health, Inc. ("Evolent" or the "Company") (NYSE: EVH) securities during the period from March 3, 2017 to May 28, 2019 (the "Class Period"). Investors have until October 7, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Evolent failed to disclose to investors that: (i) Evolent's partnership model did not align the Company's interests with those of its partners, as the model was designed to inflate the Company's revenue by extracting enormous administrative and management fees at the expense of its operating partners such as Passport Health Plan ("Passport"); (ii) Passport was struggling financially, particularly after Kentucky cut its reimbursement rates, and the partnership between Evolent and Passport was becoming increasingly unsustainable; (iii) Evolent was draining Passport of functions, employees and money, to such an extent that Passport was left on the verge of insolvency; and (iv) Passport was conducting a bidding process for several months to sell itself to prevent liquidation.
On May 29, 2019, Evolent announced that it had agreed to purchase a controlling interest in University Health Care, Inc., d/b/a Passport Health Plan, despite prior statements that acquiring health plans was not part of the Company's strategic focus. On this news, Evolent's share price fell $4.14 per share, or 29.3%, to close at $10.01 on May 29, 2019.
If you acquired Evolent securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out the contact form at the link below, to discuss your rights or interests with respect to these matters without any cost to you.