Grabar Law Office Investigates Potential Claims Against Officers and Directors of Oak Street Health, Inc. (NYSE: OSH)

Philadelphia, Pennsylvania--(Newsfile Corp. - May 28, 2022) - On November 1, 2021 the Oak Street Health, Inc. OSH received a civil investigative demand ("CID") from the United States Department of Justice ("DOJ"). According to the CID, the DOJ was investigating whether the Company violated the False Claims Act. The CID also requested documents and information related to the Oak Street's relationships with "third-party marketing agents" and Oak Street's "provision of free transportation to federal health care beneficiaries."

Oak Street revealed the DOJ's investigation on November 8, 2021 and the share price fell $9.75, or more than 20%.

In the wake of the disclosure, a federal class action complaint was filed which alleged that 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: (1) that Oak Street maintained relationships with third-party marketing agents likely to provoke law enforcement scrutiny; (2) that Oak Street was providing free transportation to federal health care beneficiaries in a manner that would provoke law enforcement scrutiny; (3) that these activities may be violations of the False Claims Act; (4) that, as such, Oak Street was at heightened risk of investigation by the DOJ and/or other federal law enforcement agencies; (5) that, as a result, Oak Street was subject to adverse impacts related to defense and settlement costs and diversion of management resources; and (6) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Specifically, it is alleged that around the time of the Company's August 6, 2020 IPO, when Oak Street needed to demonstrate growth to justify its valuation and increase its stock offering price, the Company began paying third-party insurance agents at least $200 as kickbacks for each patient the agents referred to Oak Street. Moreover, Oak Street was, both leading up to and after the IPO, repeatedly marketing and providing free transportation to prospective patients as a kickback to induce them to join Oak Street, including to induce them to switch from their existing primary care doctor.

Current long-term Oak Street shareholders can seek corporate reforms, the return of funds back to company coffers, and potentially a court approved incentive award if appropriate.

If you would like to learn more about this matter at no cost to you, please fill out the form provided at https://grabarlaw.com/the-latest/oak-street-health-inc-investigation/ or contact us at jgrabar@grabarlaw.com or call 267-507-6085.

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These materials have been prepared by the Grabar Law Office for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Prior results referred to in these materials do not guarantee or suggest a similar result in other matters.

Contact:
Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103
Tel: 267-507-6085
Email: jgrabar@grabarlaw.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/125680