A shareholder class action lawsuit has been filed against Ontrak, Inc. (“Ontrak” or the “Company”) (NASDAQ: OTRK) on behalf of investors who purchased shares of the Company’s stock between November 5, 2020 and February 26, 2021, inclusive (the “Class Period”).
As detailed in the complaint, on March 1, 2021, Ontrak issued a press release announced preliminary financial results for fourth quarter and full year 2020. Therein, the Company disclosed that its largest customer had terminated its contract with Ontrak, effective June 26, 2021. The Company stated that this customer “evaluated Ontrak on a provider basis” and “[a]s such, the customer evaluated [Ontrak’s] performance based on [its] ability to achieve the lowest possible cost per medical visit, and not on [its] clinical outcomes data or medical cost savings.” Additionally, the Company stated that “the coaching model which Ontrak has pioneered for over a decade was seen by the customer to be less relevant to their performance metrics.” Following this news, shares of the Company’s common stock fell $27.32, or more than 46% in value, to close on March 1, 2021 at $31.62 per share.
Ontrak stockholders who purchased shares of the Company’s common stock prior to February 26, 2021 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about this action and their legal rights and options.