SAN DIEGO, April 30, 2024 (GLOBE NEWSWIRE) -- DiCello Levitt LLP announces that purchasers or acquirers of GoodRx Holdings, Inc. (“GoodRx” or the “Company”) (NASDAQ: GDRX) common stock between September 23, 2020 and November 8, 2022, inclusive (the “Class Period”) have until June 21, 2024 to seek appointment as lead plaintiff of the GoodRx class action lawsuit. The GoodRx lawsuit charges the Company and certain senior executive officers with violations of the federal securities laws.
If you purchased shares of GoodRx common stock between September 23, 2020 and November 8, 2022, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/goodrx/
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Case Allegations: GoodRx operates a price comparison platform for prescription drugs which, in many cases, offers consumers access to lower prices (through discount codes and coupons) for their medications. GoodRx generates most of its revenue from contracts with pharmacy benefit managers (“PBMs”) who agree to pay GoodRx a commission on prescription drug purchases made by consumers who use GoodRx’s discount codes and coupons at participating pharmacies. GoodRx also generates a portion of its revenue from subscription plans like the “Kroger Rx Savings Club,” which provides “access [to] lower prescription prices at” pharmacies operated by The Kroger Co. (“Kroger”).
The GoodRx lawsuit alleges that defendants made false and/or misleading statements and failed to disclose that: (i) while Kroger accounted for less than 5% of the pharmacies accepting GoodRx discounts, Kroger was responsible for nearly 25% of GoodRx’s total prescription transactions revenue (Kroger’s primary revenue stream); and (ii) Kroger could unilaterally cease accepting GoodRx discounts, cutting off some or all of GoodRx’s revenues for purchases at Kroger’s pharmacies.
According to the GoodRx lawsuit, on May 9, 2022, the Company revealed that, late in the first quarter of 2022, “a grocery chain had taken actions that impacted acceptance of discounts from most [pharmacy benefit managers (“PBMs”)] for a subset of drugs” and that this “impacted the acceptance of many PBM discounts for certain drugs at this grocer’s stores” and that this disruption “could have an estimated revenue impact of roughly $30 million” in the second quarter of 2022 – resulting in GoodRx announcing disappointing second quarter 2022 revenue guidance of only about $190 million. GoodRx’s Co-Chief Executive Officer, defendant Trevor Bezdek, also admitted that the use of GoodRx discounts at the “grocery chain” – which analysts and media outlets recognized as Kroger – were responsible for nearly 25% of GoodRx’s prescription transactions revenue, according to the complaint. On this news, the price of GoodRx common stock fell more than 25%, according to GoodRx class action lawsuit.
Then on November 8, 2022, as alleged in the GoodRx lawsuit, the Company estimated that the “impact of the grocer issue on third quarter [prescription transactions revenue] was approximately $40 million” and that GoodRx expected “a combined $45 million to $50 million estimated impact to prescription transactions revenue” for the fourth quarter of 2022. Defendants further acknowledged that GoodRx was seeking to enter into contractual relationships with pharmacies to prevent similar disruptions from occurring in the future, according to the complaint. On this news, the price of GoodRx common stock fell more than 22%.
About DiCello Levitt: At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise – for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations – and our capital – on the line for our clients.
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