The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Evolent Health, Inc. (NYSE: EVH) who purchased shares between March 3, 2017 and May 28, 2019. The action, which was filed in the United States District Court for the Eastern District of Virginia, alleges that the Company violated federal securities laws.
In particular, the Evolent lawsuit alleges that (1) Evolent's partnership model was not aligned with its partners, as it was designed to parasitically increase its own revenue by extracting enormous administrative and management fees at the expense of its partners such as Passport Health Plan ("Passport"); (2) Passport was struggling financially, particularly after Kentucky cut its reimbursement rates, and the partnership between Evolent and Passport was becoming increasingly unsustainable; (3) Evolent was draining Passport of functions, employees, and money to such an extent that Passport was left on the verge of insolvency; (4) for several months, Passport was conducting a bidding process to sell itself to a financial buyer to prevent liquidation; and (5) as a result of the foregoing, Defendants public statements were materially false and/or misleading and/or lacked a reasonable basis.
Shareholders have until October 7, 2019 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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