Recent Securities Litigations
Ontrak Inc. Common Stock (NASDAQ: OTRK)
According to the Complaint, Ontrak, Inc. is a healthcare company that offers a Predict-RecommendEngage platform that organizes and automates healthcare data integration and analytics. A critical component of this platform are Ontrak programs, which are designed to provide healthcare solutions to members with behavioral conditions that cause or exacerbate chronic medical conditions.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that Ontrak's largest customer evaluated the Company on a provider basis, valuing Ontrak's performance based on achieving the lowest cost per medical visit rather than clinical outcomes or medical cost savings; (2) that, as a result, Ontrak's largest customer did not find the Company's program to be effective and was reasonably likely to terminate its contract with Ontrak; (3) that, because this customer accounted for a significant portion of the Company's revenue, the loss of the customer would have an outsized impact on Ontrak's financial results; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.