Oak Street Health, Inc. (OSH) Shareholder News: Stephens & Stephens is Investigating Oak Street Health, Inc. on Behalf of Investors

Rhea-AI Summary

Stephens & Stephens is investigating Oak Street Health, Inc. (NYSE: OSH) for potential violations of securities laws and fiduciary duties. Following a civil investigative demand from the U.S. Department of Justice regarding the company's practices, including its relationships with third-party marketing agents and free transportation for federal health care beneficiaries, the stock dropped over 20% to $37.14 on November 9, 2021. A class action complaint alleges undisclosed facts that heighten legal risks for the company, impacting defense costs and management resources.

Positive

• None.

Negative

• Stock price fell $9.75 (over 20%) to $37.14 on November 9, 2021.
• Ongoing investigation by the U.S. Department of Justice for potential violations of the False Claims Act.
• Potential exposure to significant defense and settlement costs.
• Management resources may be diverted due to legal scrutiny.

SANTA MARIA, Calif.--(BUSINESS WIRE)-- Stephens & Stephens informs investors that it is investigating whether the officers and directors of Oak Street Health, Inc. (NYSE: OSH) violated securities laws or breached fiduciary duties to shareholders. Oak Street purportedly operates primary care centers in the U.S.

For more information about our investigation into Oak Street Health, Inc.'s misconduct, contact us here.

Oak Street Health, Inc. (OSH) is Being Investigated for Violating the False Claims Act

According to a class action complaint filed against the Company, 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 class action 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.

Next Steps: If you own shares of Oak Street Health, Inc. (OSH), you may have legal options. Contact us for more information.

Conrad Stephens
(805) 922-1951
info@stephensfirm.com

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Attorney Advertising. Past results do not guarantee a similar outcome.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221101006078/en/

Conrad Stephens

Stephens & Stephens

518 E. Main Street

Santa Maria, CA 93454

(805) 922-1951

info@stephensfirm.com

Source: Stephens & Stephens

FAQ

What is the investigation involving Oak Street Health (OSH)?

Stephens & Stephens is investigating Oak Street Health for potential violations of securities laws and fiduciary duties to shareholders.

Why did Oak Street Health's stock price drop significantly?

The stock price dropped over 20% following a civil investigative demand from the U.S. Department of Justice about the company's practices.

What claims are being made against Oak Street Health?

A class action complaint alleges that Oak Street Health concealed critical facts related to its business practices, raising legal risks.

What are the potential consequences for Oak Street Health due to the investigation?

The investigation may lead to increased defense and settlement costs and affect management resources.