Oak Street Health, Inc. (OSH) is Being Investigated for Violating the False Claims Act
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Oak Street Health, Inc. (NYSE: OSH) securities between August 6, 2020 and November 8, 2021. Oak Street purportedly operates primary care centers in the U.S.
According to the complaint, on November 8, 2021, Oak Street disclosed that on November 1, 2021, the Company received a civil investigative demand (“CID”) from the U.S. Department of Justice (“DOJ”). According to the CID, the DOJ was investigating whether the Company violated the False Claims Act. The CID also requests documents and information related to Oak Street’s relationships with “third-party marketing agents” and Oak Street’s “provision of free transportation to federal health care beneficiaries.” On this news, the Company’s stock price fell $9.75, or more than 20%, to close at $37.14 per share on November 9, 2021.
The complaint alleges that during the class period, defendants failed to disclose facts about Oak Street’s business, including that it maintained relationships with third-party marketing agents likely to provoke law enforcement scrutiny and was providing free transportation to federal health care beneficiaries in a manner that would provoke law enforcement scrutiny. Because these activities may be violations of the False Claims Act, Oak Street was at a heightened risk of investigation by the DOJ and/or other federal law enforcements agencies and was subject to adverse impacts related to defense and settlement costs and diversion of management resources.
If you purchased shares of Oak Street Health, Inc. (OSH) between August 6, 2020 and November 8, 2021, you have until March 11, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.