DOCGO – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against DocGo Inc. (“DocGo” or “the Company”) (NASDAQ: DCGO) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired DocGo securities November 8, 2022 through September 17, 2023 (the “Class Period”). Investors who acquired DocGo securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is December 26, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased DocGo securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST DOCGO
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) DocGo’s executive hiring processes were inadequate to fully review and vet the professional and academic backgrounds of job candidates; (ii) the foregoing increased the likelihood of disruptive executive turnover; (iii) contrary to its representations to investors, DocGo had overstated the efficacy of its mobile health and medical transportation services, the very services contemplated by the Relocation Contract; (iv) all of the foregoing, once revealed, was likely to subject DocGo to significant reputational and/or regulatory scrutiny that would negatively impact the Company’s financial position and/or prospects; and (v) as a result, the Companys public statements were materially false and misleading at all relevant times. On July 30, 2023, the New York Times published an article reporting on a “rocky” start to DocGo’s migrant relocation efforts in New York City. The New York Times article reported that asylum-seekers have complained of threats and “broken promises” after New York City awarded DocGo the Relocation Contract. Specifically, the article stated that “[l]ocal authorities have expressed frustration at the lack of coordination between DocGo and agencies that could provide services to the migrants; local security guards hired by DocGo have repeatedly threatened the migrants; and finding steady work has been nearly impossible[.]” DocGo’s $432 million contract nearly matches the Company’s total 2022 revenue of roughly $441 million. Following publication of the New York Times article, DocGo’s stock price fell $0.53 per share, or 6.29%, to close at $7.89 per share on July 31, 2023. Then, on August 22, 2023, the Albany Times Union published an article reporting that the New York Attorney General (“AG”) had opened an investigation into DocGo and cautioned the Company to cease limiting migrants’ speech or movement. Specifically, the AG’s Civil Rights Bureau sent a letter sent to DocGo’s attorneys detailing “serious concerns” it had regarding potential violations of state and federal laws in its handling of the Relocation Contract. Then, on September 6, 2023, New York City Comptroller Brad Lander (“Comptroller Lander”) announced that his office was declining to approve the Relocation Contract. Comptroller Lander noted in a letter to Department of Housing & Preservation Development commissioner Adolfo Carrin Jr. that his decision to reject the Relocation Contract was “due to numerous outstanding concerns” including “[i]nsufficient budget detail to justify over $432 million in contract value,” “[i]nconclusive reasoning as to the selection of the vendor and contradictory statements about their fiscal ability to provide contracted services,” “[i]nadequate vendor responsibility determination, contract oversight and subsequent questions about proper service delivery,” and “[i]nadequate information regarding the selection of subcontractors.” Mayor Adams had the authority to proceed with the Relocation Contract over Comptroller Lander’s objections and ultimately did so. On this news, DocGo’s stock price fell $0.61 per share, or 7.47%, to close at $7.55 per share on September 6, 2023. Then, on September 14, 2023, the Albany Times Union published an article reporting that Defendant Capone had falsified portions of his professional biography regarding his educational history. On the following day, September 15, 2023, DocGo disclosed Capone’s resignation as CEO in a filing with the Securities and Exchange Commission. On this news, DocGo’s stock price fell $0.76 per share, or 11.76%, to close at $5.70 per share on September 15, 2023. Finally, on September 18, 2023, Comptroller Lander announced that his office was commencing a real-time audit of operations and invoices incurred by DocGo in connection with the Relocation Contract. Specifically, Comptroller Lander noted that his office has “serious concerns about the selection of this vendor and its performance of contract duties.” On this news, DocGo’s stock price fell $0.41 per share, or 7.19%, to close at $5.29 per share on September 18, 2023.
ABOUT DOCGO
- DocGo stands out as a prominent company in the realm of last-mile mobile health services and integrated medical mobility solutions. One of their noteworthy offerings is the DocGo Mobile Health service, which effectively bridges the crucial gap that exists between telemedicine consultations and traditional in-person medical treatments. This is accomplished through a comprehensive integration with industry-leading Electronic Health Record (EHR) providers, ensuring the smooth coordination of healthcare logistics for the benefit of patients and healthcare providers alike. This innovative approach to healthcare delivery holds the potential to enhance patient care and accessibility to medical services in an increasingly digital healthcare landscape.
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in DocGo during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is December 26, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against DocGo are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
