A lawsuit was filed on behalf of investors in Root, Inc. (NASDAQ:ROOT) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/07/2021 -- An investor, who purchased NASDAQ: ROOT shares, filed a lawsuit against Root, Inc. over alleged violations of Federal Securities Laws.
Investors who purchased shares of Root, Inc. (NASDAQ: ROOT) have certain options and for certain investors are short and strict deadlines running. Deadline: May 18, 2021. NASDAQ: ROOT investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Columbus, OH based Root, Inc. provides insurance products and services in the United States. On or around October 27, 2020, Root, Inc. (NASDAQ: ROOT) conducted its initial public offering ("IPO"), selling 26.8 million shares of common stock priced at $27.00 per share.
On March 9, 2021, BofA Securities analyst Joshua Shanker initiated coverage of Root, Inc. (NASDAQ: ROOT) with an "Underperform" rating on the premise that the Company is unlikely to be cash flow positive until 2027, finding that Root, Inc. "will require not insignificant cash infusions from the capital markets to bridge its cash flow needs."
The plaintiff claims that the Offering Documents the were filed in connection with the IPO and the Defendants made false and/or misleading statements and/or failed to disclose that Root, Inc. would foreseeably fail to generate positive cash flow for at least several years following the IPO, that accordingly, the Company would foreseeably require significant cash infusions to meet its cash flow needs, that notwithstanding the Defendants' touting of Root's purportedly unique, data-driven advantages, several of the Company's established industry peers in fact possessed significant competitive advantages over Root with respect to, inter alia, telematics data and data engagement, and that as a result, the Offering Documents and Defendants' public statements between October 28, 2020 and March 8, 2021were materially false and/or misleading and failed to state information required to be stated therein.
Those who purchased shares of Root, Inc. (NASDAQ: ROOT) have certain options and should contact the Shareholders Foundation.
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