GlobeNewswire SHAREHOLDER ALERT: Pomerantz Law Firm Advises Investors with Losses on their Financial Investment in GoHealth, Inc. of Class Action Suit and Upcoming Deadline– GOCO

New York City, Oct. 21, 2020 (WORLD NEWSWIRE)– Pomerantz LLP reveals that a class action suit has been filed against specific officers of GoHealth, Inc. (“GoHealth” or the “Business”) (NASDAQ: GOCO). The class action, filed in United States District Court for the Northern District of Illinois, Eastern Division, and docketed under 20-cv-05701, is on behalf of a class consisting of all individuals besides Defendants who acquired or otherwise, acquired GoHealth Class A typical stock pursuant and/or traceable to the registration statement issued in connection with GoHealth’s July 2020 going public (the “IPO”), seeking to pursue solutions under the Securities Act of 1933 (the “Securities Act”) versus GoHealth, specific of GoHealth’s officers and directors, and the personal equity sponsor of the IPO and its affiliates. If you are an investor who bought GoHealth securities throughout the class period, you have up until November 20, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Grievance can be gotten at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, phone number, and the number of shares purchased. [Click on this link for information about signing up with the class action] GoHealth supplies an end-to-end health insurance marketplace that supposedly specializes in matching consumers with Medicare Benefit strategies. Based in Chicago, Illinois, GoHealth is organized as a holding company, with GoHealth Holdings, LLC (“GHH”) as the Company’s principal asset, which houses the Company’s operations. GHH was previously referred to as Blizzard Parent, LLC (“Blizzard”), till it was gotten by the private equity firm Centerbridge (specified listed below) in September 2019 for $1.1 billion in equity and cash (the “Acquisition”). In connection with the Acquisition, Centerbridge likewise consented to pay the Company’s offering investors approximately $275 million worth of additional contingent factor to consider, to be paid in the type of typical and senior favored earnout units, if the Business accomplished specific profits targets in late 2019 and 2020. Instantly following the Acquisition, GoHealth reported remarkable growth. From September 13, 2019, through December 31, 2019, GoHealth supposedly generated $308 million in net revenues, compared to just $231 million during the duration from January 1, 2019, through September 12, 2019. Therefore, GoHealth stated that it had generated considerably more profits in the three-and-a-half months following the Acquisition than in the eight-and-a-half months preceding the Acquisition. Indeed, GoHealth claimed to have actually generated more earnings in the three-and-a-half months following the Acquisition than it did throughout the Business’s entire 2018 financial year.GoHealth likewise represented that its company model was extremely lucrative, offering the very best life time value of commissions (“LTV”) per consumer acquisition cost (“CAC”) of any of its peers. LTV describes the commission profits that GoHealth anticipated to get from insurance carriers in connection with an approved submission for an insurance coverage by a brand-new consumer over time, factoring in a range of variables such as contracted commission rates, provider mix, policy persistency, and the number of anticipated submissions. CAC describes the cost to GoHealth of obtaining its customers. Therefore, LTV/CAC is a kind of success metric that generally describes just how much of a return GoHealth expected on its customer acquisition financial investments. GoHealth represented that its LTV/CAC ratio for its Medicare Internal segment (the Business’s biggest and most successful segment) was 3.9 x and 2.7 x for 2019 and its first-quarter 2020, respectively, substantially higher than the 1.7 x LTV/CAC ratio the Company mentioned it had accomplished throughout the very first quarter of 2019 and, by some price quotes, approximately double GoHealth’s peers.Although GoHealth produced net losses in 2019, the Company claimed that this was since it remained in development mode and looking for to expand its presence as a dominant force in the Medicare insurance coverage market. The Company’s adjusted revenues prior to interest, taxes, devaluation, and amortization (“EBITDA”)– a metric customized by management ostensibly to show the Company’s core profitability by omitting specific expenses– increased considerably in the lead-up to the IPO. GoHealth claimed that its adjusted EBITDA had actually grown by 388% year over year to $170 million throughout its pro forma 2019 and by 394% year over year to $35 million during the very first quarter of 2020. As an outcome of its apparently exceptional profits growth, GoHealth incurred $75 million in contingent factor to consider liability from the close of the Acquisition through the end of the very first quarter of 2020 to be paid to the Business’s prior owners.Unlike lots of competitors, the Business focused its business on simply two insurance providers: Humana and Anthem. In the very first quarter of 2020, 74% of GoHealth’s entire net profits were derived from simply these 2 providers. This carrier concentration was even greater for GoHealth’s critical Medicare sections at approximately 85% of all section revenues, despite the truth that Humana and Anthem were estimated to account for simply 23% of total Medicare Benefit market-wide enrollment.GoHealth considers insurance carriers to be its primary consumers, instead of customers since the carriers are accountable for paying commissions to GoHealth in exchange for GoHealth dependably positioning policies in compliance with appropriate policies and carrier-specific requirements. The Company does not receive any profits directly from customers. The providers use GoHealth as a scalable means of acquiring clients that can be more economical than developing internal acquisition abilities. According to GoHealth, the Business’s high LTV/CAC ratio was mostly the outcome of the Company’s distinct competitive benefits in the services it supplies to its insurance coverage provider partners. As explained by the Company, GoHealth’s “Best-in-Class Medicare LTV/CAC Ratio” is “Driven by Proprietary Innovation, Company Processes, Data and Highly Experienced Representatives.”On June 19, 2020, just nine months after the Acquisition, GoHealth filed with the SEC a registration declaration for the IPO on Form S-1, which, after 2 amendments, was stated effective on July 14, 2020 (the “Registration Statement”). On July 16, 2020, GoHealth submitted with the SEC a prospectus for the IPO on Form 424B4, which included and formed part of the Registration Declaration. The Registration Statement was used to offer to the investing public 43.5 million shares of GoHealth Class A common stock at $21 per share, for overall gross proceeds of $913.5 million. Earnings from the IPO were utilized primarily for the function of paying the Company’s experts and Centerbridge and consummating financial commitments which had arisen from the Acquisition.The Problem alleges that the Registration Statement for the IPO was negligently ready and, as an outcome, consisted of false declarations of material fact, omitted product truths needed to make the statements consisted of therein not deceptive, and failed to make essential disclosures needed under the guidelines and regulations governing its preparation. Particularly, the Registration Declaration failed to disclose that at the time of the IPO: (i) the Medicare insurance industry was undergoing a duration of raised churn, which had started in the very first half of 2020; (ii) GoHealth suffered from a higher risk of consumer churn as an outcome of its special service model and minimal provider base; (iii) GoHealth suffered from destructions in consumer persistency and retention as an outcome of raised industry churn, vulnerabilities that arose from the Company’s focused carrier business design, and GoHealth’s efforts to expand into new geographies, develop new provider partnerships and getting worse product mix; (iv) GoHealth had actually entered into materially less beneficial revenue-sharing arrangements with its external sales agents; and (v) these unfavorable monetary and functional trends were internally predicted by GoHealth to continue and worsen following the IPO.Shortly after the IPO, the cost of GoHealth Class A typical stock suffered significant rate decreases, and by September 15, 2020, GoHealth Class A typical stock closed at just $12.53 per share– over 40% below the $21 per share cost investors paid for the stock in the IPO less than 2 months previously.The Pomerantz Company, with offices in New york city, Chicago, Los Angeles, and Paris is acknowledged as one of the leading companies in the locations of business, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Company originated the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the custom he developed, defending the rights of the victims of securities fraud, breaches of fiduciary responsibility, and corporate misconduct. The Firm has recuperated numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.CONTACT: Robert S. Willoughby Pomerantz LLP [email protected] 888-476-6529 ext. 7980