Bragar Eagel & Squire, PC Re

NEW YORK, June 08, 2022 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, reminds investors that class action lawsuits have been filed on behalf of shareholders of Upstart Holdings, Inc. (UPST), Oscar Health, Inc. (:OSCR), Axsome Therapeutics, Inc. (AXSM) and Humbl, Inc. (OTCMKTS:HMBL). Shareholders have until the deadlines below to ask the court to serve as lead plaintiff. Additional information on each case can be found at the link provided.

Upstart Holdings, Inc. (UPST)

Course period: March 18, 2021 – May 9, 2022

Lead applicant deadline: July 12, 2022

On May 9, 2022, after market close, Upstart announced its first quarter 2022 financial results in a press release. As part of this, the company cut its guidance for fiscal 2022, forecasting revenue of approximately $1.25 billion and a contribution margin of 48%. During the related conference call, Upstart’s CFO cited “rising interest rates and rising consumer delinquencies [as] put downward pressure on conversion.

On this news, the company’s stock price fell $43.52, or 56%, to close at $33.61 per share on May 10, 2022.

The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, the defendants failed to disclose to investors: (1) that Upstart’s AI model could not adequately account for macroeconomic factors such as interest rates that affect the price of market equilibrium for loans; (2) that, as a result, Upstart suffered a negative impact on its conversion rate; (3) that, as a result, the Company was reasonably likely to use its balance sheet to finance borrowings; and (4) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially false and/or misleading and/or lacked reasonable basis.

For more information on the Upstart class action, please visit: https://bespc.com/cases/UPST

Oscar Health, Inc. (: OSCR)

Class Period: March 4, 2021 IPO

Lead applicant deadline: July 12, 2022

In March 2021, Oscar Health completed its IPO, selling 36,391,946 shares of Class A common stock at a price of $39.00 per share. The Company received net proceeds of approximately $1.3 billion from the Offering. Proceeds from the IPO were intended to be used to fully repay outstanding borrowings, including fees and expenses, under Oscar Health’s term loan facility ($167 million), and the remainder of proceeds were to be used for general corporate purposes.

On August 12, 2021, Oscar Health disclosed that the Company’s medical loss ratio (“MLR”) for the second quarter of 2021 was 82.4%, an increase of 2,170 basis points year over year. the other. The Society asserted that “[t]MLR increased to 82.4% in 2Q21 from 60.7% in 2Q20, primarily due to significantly lower utilization in 2Q20 due to COVID-19, as well as increased testing costs and COVID-19 treatments and a return to more normalized use in 2Q21. The company also disclosed that its net loss for the quarter was $73.1 million, up $32.1 million year-over-year.

Then, on November 10, 2021, Oscar Health disclosed that its third-quarter 2021 MLR increased 920 basis points year-over-year to 99.7%. The company said the increase in MLR was “primarily due to higher net COVID costs relative to 3Q20 net profit, an unfavorable risk adjustment data validation (RADV) outcome from the previous year and the impact of the significant growth in SEP membership”. The company also disclosed that its net loss for the quarter was $212.7 million, up $133.6 million year-over-year.

In a conference call held the same day,

Scott Black Ley, the company’s chief financial officer, said, “We recorded approximately $20 million in risk adjustment expenses this quarter related to our risk adjustment data validation audit or RADV results. The RADV exercise is atypical this year due to COVID. It spans two years, 2019 and 2020. The majority of RADV headwinds relate to the results of the 2019 audit, which was recently completed.

On this news, Oscar Health’s stock price fell $4.05 per share, or 24.5%, to close at 12.47 per share on November 11, 2021.

At the start of this action, Oscar Health’s stock traded as low as $5.76 per share, down more than 85% from the IPO price of $39.00 per share. stock.

The complaint filed in this class action alleges that the registration statement was materially false and misleading and failed to state: (1) that Oscar Health was experiencing increased costs for testing and treating COVID-19; (2) that Oscar Health was experiencing an increase in net COVID costs; (3) that Oscar Health would be adversely affected by an unfavorable prior year risk adjustment data validation (RADV) outcome for 2019 and 2020; (4) that Oscar Health was about to be negatively affected by the significant growth in MS membership; and (5) that as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis.

For more information on the Oscar Health class action, please visit: https://bespc.com/cases/OSCR

Axsome Therapeutics, Inc. (AXSM)

Course period: December 30, 2019 – April 22, 2022

Lead applicant deadline: July 12, 2022

Axsome is a biopharmaceutical company engaged in the development of novel therapies for central nervous system disorders in the United States. The Company is developing, among other product candidates, AXS-07, a new oral, fast-absorbing, multi-mechanistic and investigational drug for the acute treatment of migraine.

Axsome has consistently touted the regulatory and commercial prospects of AXS-07 in anticipation of the company’s submission of a New Drug Application (“NDA”) to the United States Food and Drug Administration (“FDA”) for AXS-07 for the Acute Treatment of Migraine (the “AXS-07 NDA”) based on the drug’s positive results in two Phase 3 trials. However, unbeknownst to the investors, the preparation and eventual submission of the NDA AXS-07 by the company have been plagued by chemistry, manufacturing and control (“CMC”) issues.

The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Axsome’s CMC practices were deficient with respect to AXS-07 and its manufacturing process; (ii) as a result, it was unlikely that Axsome would submit the AXS-07 NDA within the timeframe originally planned; (iii) the above CMC issues remained unresolved at the time the FDA reviewed NDA AXS-07; (iv) as a result, the FDA was unlikely to approve NDA AXS-07; (v) as a result of all of the foregoing, Axsome had overestimated the regulatory and commercial prospects of AXS-07; and (vi) as a result, the Company’s public statements were materially false and misleading at all material times.

On November 5, 2020, Axsome issued a press release reporting the Company’s third quarter 2020 results. This press release revealed that the Company “plans to submit the [AXS-07] NDA to FDA in Q1 2021, versus previous guidance Q4 2020, to allow for inclusion of additional manufacturing information to ensure a strong submission package.

On this news, Axsome’s stock price fell $5.22 per share, or 6.99%, to close at $69.51 per share on November 5, 2020.

Then, on April 25, 2022, Axsome disclosed in a filing with the United States Securities and Exchange Commission that, “[o]n April 22, 2022, Axsome. . . was informed by the [FDA] this [CMC] issues identified during FDA review of [NDA] for its product candidate AXS-07 for the acute treatment of migraine are unresolved. This filing also revealed that “[b]Depending on the time remaining in the NDA review cycle, the Company expects to receive a full response letter [(‘CRL’)] with respect to this NDA on or about April 30, 2022 on or about the Target Action Date of the Prescription Drug User Fee Act.

On this news, Axsome’s stock price fell $8.60 per share, or 21.99%, to close at $30.50 per share on April 25, 2022.

Finally, on May 2, 2022, Axsome announced that it had received a CRL from the FDA regarding the AXS-07 NDA for the acute treatment of migraine. According to the Society, “[t]he main reasons invoked in the LCR relate to [CMC] considerations”, including “the need for additional CMC data regarding the drug product and the manufacturing process”.

For more information on the Axsome class action, visit: https://bespc.com/cases/AXSM

Humbl, Inc. (OTCMKTS: HMBL)

Course period: November 1, 2020 – May 19, 2022

Lead Applicant Deadline: July 19, 2022

Humbl is a mobile financial services company that offers investors various financial products associated with “Web 3” technology and decentralized finance.

The Complaint alleges that the Defendants violated the provisions of the Exchange Act by making false and misleading statements regarding the company’s growth prospects, technological advancements, international partnerships, and financial benefits to common stock and equity investors. Humbl’s digital assets, as well as using ad-hoc announcements to keep Humbl’s stock price high so company insiders could sell their holdings in artificially created volume. The complaint also alleges that the defendants violated securities law provisions by selling its unregistered securities (BLOCK ETX digital assets) to investors.

On April 25, 2022, the price of Humbl common stock hit a low of $0.11 per share, down from a high price of $6.84 during the Class Period, which it did not was unable to recover. Similarly, the price of the BLOCK ETX fell over 87% from its peak during the Class Period and has not recovered.

For more information about the Humbl class action, go to: https://bespc.com/cases/HMBL

About Bragar Eagel & Squire, PC:

Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation before state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertisement. Prior results do not guarantee similar results.

Contact information:

Bragar Eagel & Squire, CP
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com

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