The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against GoodRx Holdings, Inc. (GDRX)

Published 6 months ago via Business Wire

The Law Offices of Frank R. Cruz reminds investors of the upcoming June 21, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired GoodRx Holdings, Inc. (“GoodRx” or the “Company”) (NASDAQ: GDRX) common stock between September 23, 2020, and November 8, 2022, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On May 9, 2022, after the market closed, GoodRx announced its first quarter 2022 financial results and withdrew its fiscal 2022 guidance. In its shareholder letter, the Company stated that “a grocery chain had taken actions that impacted acceptance of discounts from most PBMs for a subset of drugs.” The Company expects “the grocer issue . . . could have an estimated revenue impact of roughly $30 million [and] will be ongoing without amelioration through Q2.” As a result, GoodRx “believe[s] it is unlikely [it] will be able to achieve the FY 2022 guidance” previously provided.

On this news, GoodRx’s stock price fell $2.78, or 25.9%, to close at $7.97 on May 10, 2022, thereby injuring investors.

Then, on November 8, 2022, GoodRx disclosed that the “impact of the grocer issue on third quarter [prescription transactions revenue] was approximately $40 million” and that the Company expected “a combined $45 million to $50 million estimated impact to prescription transactions revenue” for the fourth quarter of 2022.

On this news, GoodRx’s stock price fell $1.18, or 22.5%, to close at $4.06 per share on November 9, 2022, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) while Kroger accounted for less than 5% of the pharmacies accepting GoodRx discounts, Kroger was responsible for nearly 25% of GoodRx’s total prescription transactions revenue (the Company’s primary revenue stream); and (2) Kroger could unilaterally cease accepting GoodRx discounts, cutting off some or all of GoodRx’s revenues for purchases at Kroger’s pharmacies; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired GoodRx common stock during the Class Period, you may move the Court no later than June 21, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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