SHAREHOLDER ACTION ALERT: Scott+Scott Attorneys at Law LLP Reminds Investors That the Deadline to Move for Lead Plaintiff in a Securities Class Action Against LifeStance Health Group Inc. (LFST) is October 11th

New York, New York--(Newsfile Corp. - September 21, 2022) - Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, reminds investors that a securities class action lawsuit has been filed against LifeStance Health Group Inc. (NASDAQ: LFST) ("LifeStance"), certain of its officers and directors, and the underwriters of LifeStance's June 2021 initial public offering ("IPO"), alleging violations of the Securities Act of 1933.

CLICK HERE FOR MORE INFORMATION ABOUT JOINING THIS CLASS ACTION

LifeStance is one of the nation's largest providers of virtual and in-person outpatient mental health care.

On June 10, 2021, LifeStance conducted its IPO, selling 46 million shares at $18.00 per share. On August 11, 2022, the Company disclosed that it had experienced a significant negative "recent change in clinician retention levels" during the second quarter of fiscal year 2021. On this news, the price of LifeStance shares declined by $10.16, or approximately 46.46%, from $21.87 per share to close at $11.71 on August 12, 2021.

By August 10, 2022, the price of LifeStance shares had declined to $7.86, a decline of $10.14, or approximately 56.3%, from the $18.00 per share IPO price.

According to the complaint filed in the Southern District of New York, the documents used to effectuate LifeStance's IPO were false and misleading in that they failed to disclose that: (i) the number of virtual visit clients was decreasing as COVID-19 lockdowns were being lifted, thereby flatlining LifeStance's out-patient/virtual revenue growth; (ii) the percentage of in-person visits were increasing as COVID-19 lockdowns were being lifted, thereby causing LifeStance operating expenses to increase substantially; and (iii) LifeStance 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 IPO's registration statement, causing LifeStance to expend additional costs to onboard new physicians who were less productive than the outgoing physicians they were replacing.

As a result, LifeStance's business metrics and financial prospects were not as strong as the IPO's registration statement represented.

What You Can Do - CLICK HERE

If you purchased LifeStance pursuant and/or traceable to the IPO offering documents, or otherwise acquired LifeStance shares, and have suffered a loss, realized or unrealized, and you wish to discuss this action, please contact attorney Jonathan Zimmerman at (888) 398-9312 or at jzimmerman@scott-scott.com. The lead plaintiff deadline is October 11, 2022.

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.

Attorney Advertising

CONTACT:
Scott+Scott Attorneys at Law LLP
Jonathan Zimmerman
(888) 398-9312
jzimmerman@scott-scott.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/137949