Lawsuit filed for Investors in LifeStance Health Group, Inc. (NASDAQ: LFST)

An investor, who purchased shares of LifeStance Health Group, Inc. (NASDAQ: LFST), filed a lawsuit over alleged violations of Federal Securities Laws by LifeStance Health Group, Inc. in connection with LifeStance's June 10, 2021 initial public stock offering (the "IPO").

Investors who purchased shares of LifeStance Health Group, Inc. (NASDAQ: LFST) have certain options and for certain investors are short and strict deadlines running. Deadline: October 11, 2022. NASDAQ: LFST investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Scottsdale, AZ based LifeStance Health Group, Inc., through its subsidiaries, provides outpatient mental health services. On or about June 11, 2021, LifeStance Health Group, Inc. conducted its IPO, issuing 46 million shares at $18 per share.
On August 11, 2021, LifeStance Health Group, Inc. announced its financial results for second quarter 2021, which ended just days after the IPO. LifeStance Health Group, Inc. reported a net loss of $70 million and also disclosed that its operating expenses had more than tripled during the second quarter. LifeStance stated that it had experienced a significant, negative "recent change in clinician retention levels."

Then, on November 8, 2021, LifeStance Health Group, Inc. released its third quarter 2021 financial results, disclosing that "[c]linician retention [had] stabilized to approximately 80% annualized in the third quarter," and that the Company was having to increase spending on "enhanced clinician engagement and continued support for workplace and work-life flexibility."

Then, on March 10, 2022, LifeStance Health Group, Inc. reported its fiscal 2021 results, stating that a recent study had shown that three quarters of mental health patients prefer in-person services and that through 2021, telehealth services trended downwards. Additionally, the Company stated that it would be reducing the number of brick and mortar facilities that it would be building in the immediate future in order to increase its profitability.

Shares of LifeStance Health Group, Inc. (NASDAQ: LFST) declined from $16.67 per share on September 07, 2021, to as low as $4.477 per share on June 13, 2022.

The plaintiff claims that the Defendants failed to disclose to investors that the number of virtual visits clients were undertaking utilizing LifeStance Health Group, Inc. was decreasing as the COVID-19 lockdowns were being lifted, thereby flatlining the Company's out-patient/virtual revenue growth, that the percentage of in-person visits clients were undertaking utilizing LifeStance Health Group, Inc. was increasing as the COVID-19 lockdowns were being lifted, thereby causing the Company's operating expenses to increase substantially, that LifeStance Health Group, Inc. had lost a large number of physicians due to burn-out and, as a result, its physician retention rate had fallen significantly below the 87% highlighted in the Registration Statement and the Company had been expending additional costs to onboard new physicians who were less productive than the outgoing physicians they were replacing, and that as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Those who purchased shares of LifeStance Health Group, Inc. (NASDAQ: LFST) have certain options and should contact the Shareholders Foundation.

Contact:
Christopher Clausen
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.