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LifeStance Health Group, Inc. (LFST) – Securities Investigation

Company Name
LifeStance Health Group, Inc.
Stock Symbol
LFST

Case Summary

Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws by LifeStance Health Group, Inc. (NASDAQ: LFST) focused on whether LifeStance Health and certain of its officers and directors, as well as the underwriters of LifeStance Health’s June 2021 initial public offering, made false and misleading statements and/or failed to disclose material information to investors.

If you have information that could assist in this investigation or if you are a LifeStance Health investor who suffered a loss and would like to learn more, you can provide your information by clicking here.  You can also contact attorney Mary K. Blasy of Robbins Geller by calling 800/449-4900 or via e-mail at mblasy@rgrdlaw.com.

THE COMPANY: LifeStance Health provides virtual and in-person outpatient mental health care for children, adolescents, and adults experiencing a variety of mental health conditions.  On June 10, 2021, LifeStance Health went public by selling approximately 40 million shares of stock at $18 per share, raising nearly $550 million in net proceeds.  The offering documents touted LifeStance Health’s “demonstrated track record of growth” and repeatedly represented that LifeStance Health had built a “powerful organic growth engine” enabling LifeStance Health to drive growth.

THE REVELATION: Less than two months later, on August 11, 2021, LifeStance Health released its financial results for the second quarter of 2021, reporting a net loss of $70 million.  LifeStance Health also provided guidance for full year 2021 total revenue.  On this news, LifeStance Health’s stock price fell by more than 46%.

Then, on November 8, 2021, LifeStance Health released its financial results for the third quarter of 2021, reporting a net loss of $120.5 million compared to a net loss of only $3.3 million for the same period in the prior year.  On this news, LifeStance Health’s stock price fell by an additional 24%, further damaging investors.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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