GoodRx Holdings, Inc. (GDRX) Misled Shareholders Regarding its Business Prospects
Defendants timed the Company’s initial public offering (“IPO”) to happen just before Amazon.com, Inc. announced its online pharmaceutical business that would compete with GoodRx, which maximized the amount of money the selling stockholders could raise in the IPO and artificially inflated GoodRx’s stock price.
GoodRx closed its IPO on September 25, 2020, selling 39.8 million shares for $33 per share, generating over $1.3 billion in gross offering proceeds. In its Registration Statement, GoodRx touted its successes in growing market share and stated that it is “a market leader with a significant scale and brand advantage over our competitors. Our growth accelerates self-reinforcing network effects that further strengthen our competitive position.” However, at the time these statements were made, defendants knew that Amazon was about to enter the online prescription medication ordering and fulfillment business because of the Company’s close relationship with Amazon and reliance on Amazon Web Services to support the Company’s platform. On November 17, 2020, Amazon announced two new pharmacy offerings, which would compete directly with GoodRx’s platform. On this news, GoodRx’s stock declined 23%, erasing more than $4 billion of the Company’s market capitalization.
GoodRx Holdings, Inc. (GDRX) shareholders have legal options.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.