Oak Street reached a settlement with $OSH investors over claims related to risky marketing practices, free rides for federal beneficiaries, and potential FCA violations.
Back in 2021, Oak Street was being investigated by the DOJ for risky marketing practices, free rides for federal beneficiaries, and potential FCA violations. Following the disclosure of this investigation, $OSH significantly fell, and Oak Street Health faced a lawsuit from investors.
November 8, 2021: Oak Street Health disclosed a DOJ investigation in its Q3 report.
November 9, 2021: Following the disclosure, $OSH fell more than 20%.
January 10, 2022: The stockholder filed a lawsuit against Oak Street Health.
Since it went public in 2020, Oak Street Health stated that it engaged Medicare-eligible patients through various community events and provided free transportation to federal healthcare beneficiaries.
However, on November 8, 2021, Oak Street announced a DOJ investigation into its marketing practices, including misleading patients, exaggerating outcomes, offering gifts, and sharing patient information without consent.
Following this disclosure, many news reported on the investigation.
Bloomberg noted that Oak Street Health "failed to disclose material adverse facts about the company’s business operations."
CNBC also highlighted that the DOJ's investigation "raised questions about the legality of Oak Street's marketing and transportation practices."
By November 9, 2021, $OSH fell by more than 20%.
On January 10, 2022, investors filed a class action lawsuit against Oak Street Health.
What can investors expect now?
Oak Street reached a settlement with $OSH investors over claims related to risky marketing practices, free rides for federal beneficiaries, and potential FCA violations.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.