Investigation of Ontrak, Inc.

Ontrak, Inc. (OTRK) Failed to Disclose the Impact Losing its Largest Customer Would Have on its Financial Results  

Ontrak failed to disclose that: (1) its largest customer evaluated the Company on a provider basis, valuing Ontrak’s performance based on achieving the lowest cost per medical visit rather than clinical outcomes or medical cost savings; (2) as a result, Ontrak’s largest customer did not find the Company’s program to be effective and was reasonably likely to terminate its contract with Ontrak; and (3) because this customer accounted for a significant portion of the Company’s revenue, the loss of the customer would have an outsized impact on Ontrak’s financial results.

On March 1, 2021, Ontrak announced its preliminary financial results for fourth quarter and full year 2020 and shared that its largest customer had terminated its contract with Ontrak effective June 26, 2021.  Apparently, “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, which were meaningful and significant.”  Further, “the coaching model which Ontrak has pioneered for over a decade was seen by the customer as less relevant to their performance metrics.”  On this news, Ontrak’s share price fell $27.32, or more than 46%, to close at $31.62 per share on March 2, 2021.

If you purchased shares of Ontrak, Inc. (OTRK) between November 5, 2020 and February 26, 2021, you have until May 3, 2021, 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.

Send us a message for more information.

Protect your investments.

Sign up for free investment monitoring.

Stock Watch members receive free investment monitoring and notifications.  

Leave your details to get started

"*" indicates required fields

Ticker + Amount
This field is for validation purposes and should be left unchanged.

Skip to content