Labaton Keller Sucharow was appointed Lead Counsel in a securities class action against Bright Health Group, Inc. (Bright Health) (n/k/a NeueHealth, Inc.) and certain of its officers and underwriters (collectively, Defendants) on April 26, 2022.  The lawsuit alleges that Defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (Securities Act), injuring shareholders who purchased Bright Health common stock pursuant and traceable to the registration statement and prospectus (collectively, the Offering Documents) issued in connection with Bright Health’s June 24, 2021 initial public offering (IPO).

Bright Health was a healthcare insurance company incorporated under the laws of Delaware, with a principal place of business in Minneapolis, Minnesota. Prior and leading up to the IPO, Bright Health was alleged to have been struggling with staffing and resource management, in connection with its medical provider directory maintenance and medical claims processing, and COVID-19-related detriments.  Simultaneously, Bright Health was engaging in a spree of acquisitions, resulting in immense growth and an influx of new members.  Bright Health’s operational and COVID-19 issues, in conjunction with its new members, resulted in Bright Health lacking visibility into its member and medical provider populations.  Because Bright Health’s key performance indicators—risk adjustment payable/receivable and Medical Cost Ratio (MCR)—required visibility into member population health and member and provider healthcare claims, Bright Health’s lack of such visibility caused it to misreport the foregoing financial figures.

The Amended Complaint, filed on June 24, 2022, alleged that Bright Health’s Offering Documents contained false and misleading statements of material fact, omitted to state other facts necessary to make the statements made not misleading, and omitted to state facts required to be stated therein.  Specifically, the Amended Complaint alleged that, even considering the aforementioned issues, Bright Health, among other things, touted its risk adjustment performance capabilities and MCR growth and represented certain materialized risks concerning medical costs, risk adjustment performance, growth, and COVID-19-related detriments as merely potential.  Bright Health’s financial reports for the third and fourth quarters, and full year, of 2021 revealed the Company’s deteriorating state, as disclosure of drastic net losses and ballooning MCR caused Bright Health’s share price to plummet significantly, harming investors who purchased pursuant and traceable to the IPO.

On November 13, 2025, the United States Court of Appeals for the Second Circuit reversed the United States District Court for the Eastern District of New York’s dismissal of the Amended Complaint and revived the Sections 11, 12(a)(2) and 15 claims under the Securities Act, allowing the case to proceed against Defendants.

The case is Marquez v. Bright Health Group, Inc., No. 22-cv-00101, in the United States District Court for the Eastern District of New York.  Labaton Keller Sucharow represents Lead Plaintiff Winston Van.