DEADLINE FOR ROOT INVESTORS: Bernstein Liebhard Reminds Investors of the Deadline to File a Lead Plaintiff Motion in a Securities Class Action Lawsuit Against Root, Inc.
New York, New York--(Newsfile Corp. - May 11, 2021) - Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of those who (i) purchased or acquired Root, Inc. ("Root," or the "Company") (NASDAQ: ROOT) between October 28, 2020, and March 8, 2021 (the "Class Period") and/or (b) Root Class A common stock pursuant to and/or traceable to the Offering Documents issued in connection with the Company's initial public offering conducted on or about October 28, 2020 (the "IPO" or "Offering"). The lawsuit was filed in the United States District Court for the Southern District of Ohio to recover damages for Root investors under the Securities Act of 1933 and the Securities Exchange Act of 1934.
If you purchased Root securities, and/or would like to discuss your legal rights and options please visit Root Shareholder Class Action Lawsuit or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com.
According to the lawsuit, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Root would foreseeably fail to generate positive cash flow for at least several years following the IPO; (ii) accordingly, the Company would foreseeably require significant cash infusions to meet its cash flow needs; (iii) notwithstanding the Defendants' touting of Root's purportedly unique, data-driven advantages, several of the Company's established industry peers in fact possessed significant competitive advantages over Root with respect to, inter alia, telematics data and data engagement; and (iv) as a result, the Offering Documents and Defendants' public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
On March 9, 2021, Bank of America securities analyst Joshua Shanker initiated coverage of Root with an "Underperform" rating on the premise that the Company is unlikely to be cash flow positive until 2027, finding that Root "will require not insignificant cash infusions from the capital markets to bridge its cash flow needs." Shanker also noted that insurers Progressive, Allstate, and Berkshire Hathaway's Geico would continue to impede the Company's profitability, with progressive and Allstate having a "sizable advantage over Root in terms of amount of [telematics] data as well as engagement with the data" used to price their auto insurance.
On this news, Root's stock price fell $0.18 per share, or 1.46% to close at $12.17 per share on March 9, 2021, representing a total decline of 54.93% from the offering price.
If you wish to serve as lead plaintiff in the class action, you must move the court no later than May 18, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you take no action, you may remain an absent class member.
If you purchased Root securities, and/or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/rootinc-root-shareholder-class-action-lawsuit-stock-fraud-382/apply/ or contact Joseph R. Seidman, Jr. toll free at (877) 779-1414 or Seidman@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
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