Allison v. Oak Street Health Inc.

Labaton Keller Sucharow serves as co-lead counsel in an action against Oak Street Health, Inc. (Oak Street or the Company), certain officers and directors of the Company, two private equity firm controlling shareholders and the subsidiaries in which they hold Oak Street stock, and the underwriters for Oak Street’s initial public offering and secondary public offerings.  The action asserts claims under Sections10(b) and 20(a) of the Exchange Act of 1934 as well as Sections 11 and 15 of the Securities Act of 1933.  The Class Period begins on August 6, 2020, the date of Oak Street’s Initial Public Offering.

Oak Street operates primary care centers that focus exclusively on patients that are Medicare eligible.  The action alleges that Oak Street failed to disclose that the Company was violating federal law in its patient acquisition tactics to enroll new members at its primary care clinics.  The concealment of these practices was revealed to the market on November 8, 2021, when Oak Street told investors that it had received a Civil Investigative Demand (CID) from the U.S. Department of Justice with respect to the patient acquisition practices.

On January 10, 2022, the Court appointed Boston Retirement System, Central Pennsylvania Teamsters Pension Fund - Defined Benefit Plan, and Central Pennsylvania Teamsters Pension Fund - Retirement Income Plan 1987 as lead plaintiffs and Labaton Keller Sucharow as co-lead counsel. 

On February 10, 2023, the Court dismissed Defendants’ motion to dismiss in large part, leaving the majority of the claims intact and allowing the case to proceed to discovery.

The case is Allison v. Oak Street Health Inc., No. 22-cv-0149 (N.D. Ill.).  Labaton Keller Sucharow represents Boston Retirement System.