Stock News

Investor Alert: Kessler Topaz Unveils Securities Fraud Lawsuit Against GoodRx Holdings

RADNOR, Pa., May 3, 2024 /PRNewswire/ -- The esteemed law office of Kessler Topaz Meltzer & Check, LLP has recently announced the filing of a securities fraud class action lawsuit on behalf of investors against GoodRx Holdings, Inc. (NASDAQ: GDRX), commonly known as GoodRx. The lawsuit seeks to represent individuals who invested in GoodRx common stock during the period from September 23, 2020, to November 8, 2022, which is referred to as the "Class Period". The suit, bearing the case name Barsuli v. GoodRx Holdings, Inc., et al., Case No. 2:24-cv-03282-DDP-AJR, was lodged with the United States District Court for the Central District of California.

Comprehensive Legal Action Initiated

Investors who have acquired GoodRx common stock within the specified Class Period are reminded of the critical deadline of June 21, 2024. By this date, they may petition the court to become the lead plaintiff representing the class of investors. This pivotal role necessitates involvement in the direction of the lawsuit.

Those who have suffered financial losses due to investments in GoodRx are encouraged to learn more about their legal rights and options. Interested parties can click here or visit Kessler Topaz's New Cases for further information and to sign up for the case.

Jonathan Naji, Esq., an attorney at Kessler Topaz, is available to assist and provide additional details to GoodRx investors. To contact him, individuals can dial (484) 270-1453 or send an email to [email protected].

Defendants' Alleged Misconduct Detailed

GoodRx operates an innovative platform that provides consumers access to lower prices for prescription drugs through supplements such as discount codes and coupons. The company predominantly derives its revenue from partnerships with pharmacy benefit managers (PBMs) who compensate GoodRx for prescriptions filled using the discounts and coupons offered.

Another significant source of income for GoodRx, particularly highlighted during their initial public offering, is the Kroger Rx Savings Club, which offers reduced prescription prices at Kroger pharmacies. However, undisclosed to investors was the substantial risk posed by GoodRx's heavy reliance on Kroger, which accounted for nearly one-quarter of GoodRx's prescription transactions revenue.

A pivotal piece of omitted information was Kroger's ability to independently decide not to accept GoodRx's discounts without notice, a reality that came to light on May 9, 2022. This revelation indicated actions by a major grocery chain that affected the acceptance of most PBM discounts for certain drugs at its stores, leading to a severe revenue impact estimate of approximately $30 million in the second quarter of 2022 for GoodRx.

GoodRx's announcement of floundering revenue expectations for the second quarter – projected to be around $190 million – came as a shock to investors. While GoodRx did not explicitly name Kroger, it was swiftly identified by analysts and media sources as the consequential "grocer" in question.

As a result of this unforeseen news, GoodRx common stock experienced a staggering drop of more than 25%, with a $2.78 per share dive, from a previous close of $10.75 per share on May 9, 2022, to a closing price of $7.97 per share on May 10, 2022.

The dire situation exacerbated on November 8, 2022, when GoodRx revealed the Kroger disruption's full financial impact. They estimated an approximate $40 million blow to their third-quarter prescription transactions revenue and anticipated a combined setback of $45 million to $50 million for the fourth quarter. Alongside this, acknowledgments regarding efforts to forge contractual relationships with pharmacies were made to forestall analogous disturbances in the future.

Consequent to this latter disclosure, the GoodRx common stock plunged yet again, this time by over 22%, which equated to a decline of $1.18 per share. The stock dropped from a closure of $5.24 per share on November 8, 2022, to a concluding price of $4.06 per share on the following day.

What Steps Can Investors Take?

With the deadline swiftly approaching, potentially affected GoodRx investors are urged to reflect on their options. They may choose to move the court to serve as lead plaintiff for the class by the June 21, 2024 deadline by coordinating with Kessler Topaz Meltzer & Check, LLP, or another counsel. Alternatively, they can opt for a more passive role and remain an absent class member.

It's imperative to understand that becoming the lead plaintiff, who guides the litigation on behalf of the class, demands that one possesses a considerable financial interest in the proceedings, aligning with the class’s interests. Selection of lead or class counsel, if given the court’s approval, also falls under the responsibilities of this predominant investor or group of investors.

About Kessler Topaz Meltzer & Check, LLP

Kessler Topaz Meltzer & Check, LLP is a prominent law firm that litigates class action suits across the United States and internationally. Garnering a well-earned reputation for excellence, the firm's meticulous legal pursuits have culminated in the recovery of billions of dollars on behalf of victims of fraud and corporate misfeasance. Central to their mission is the commitment to serve investors, consumers, employees, and others against fraud, abuse, and negligence by businesses and fiduciaries.

For more information about the legal services provided by Kessler Topaz Meltzer & Check, LLP or to understand the details of this lawsuit, visit www.ktmc.com.

Contact Information

Investors or interested individuals seeking additional insights or willing to partake in this legal battle are advised to reach out to Kessler Topaz Meltzer & Check, LLP:

Jonathan Naji, Esq. 280 King of Prussia Road Radnor, PA 19087 Telephone: (844) 887-9500 (toll-free) Email: [email protected]

It should be noted that the materials provided here could be contemplated as attorney advertising in specific jurisdictions. The firm wishes to clarify that past legal outcomes are not indicative and do not guarantee similar results in the future.

SOURCE: Kessler Topaz Meltzer & Check, LLP

In conclusion, Kessler Topaz Meltzer & Check, LLP has opened the doors to recourse for investors affected by the GoodRx circumstances. With the firm's distinguished track record of representing the wronged against fraud and other forms of corporate malpractice, this legal undertaking demands significant attention from the investment community.

The outlined details of the lawsuit reflect a significant turning point in medical cost transparency and consumer trust—a narrative that will continue to unravel as legal proceedings ensue. We look forward to following any developments and providing updates to the investing public.