Simpson Thacher won a dismissal, on behalf of clients Bright Health Group, Inc. (now known as NeueHealth) (“Bright Health”) and certain of its senior officers and directors of a federal securities class action suit filed in the U.S. District Court for the Eastern District of New York. The suit, filed against Bright Health, certain of its senior officers and directors, and the underwriters of its 2021 IPO alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Plaintiff alleged that Defendants made a series of materially false and/or misleading statements about Bright Health in the company's 2021 IPO registration statement and prospectus, which allegedly overstated Bright Health's post-IPO business and financial prospects, and failed to disclose that the company was ill-equipped to handle the impact of COVID-19 related costs and that it was experiencing a decline in premium revenue.
On November 1, 2024, Hon. LaShann DeArcy Hall dismissed the complaint in its entirety and ordered entry of final judgment as to all claims and defendants, agreeing that Defendants had adequately disclosed risks that materialized after Bright Health’s IPO, and that Plaintiff failed to prove that Defendants made false and misleading statements, and acted with scienter.
The team received a “Shout Out” in The American Lawyer’s “Litigator of the Week” coverage.
The Simpson Thacher team included Joe McLaughlin, George Wang, Anthony Piccirillo, Patrick Barry and Nick Cunha.