In July 2020, GoHealth, Inc. (NASDAQ: GOCO) went public, selling stock to investors at $21 per share. Just one month later, GoHealth reported an almost $23 million quarterly loss, in sharp contrast to the $15 million profit it earned in the prior year period.
A lawsuit filed against GoHealth alleges that GoHealth’s executives admitted that customer churn matched internal Company “expectations” and that churn was increasing, as internally expected, before and at the time of the IPO. However, GoHealth never revealed this information to its investors.
On this news, GoHealth’s stock fell from its August 19, 2020 closing price of $19.02 per share to an August 21, 2020 close of $15.97 per share. GoHealth’s stock has since closed as low as $12.53 per share, representing a decline of over 40% from the IPO price.