Accolade Misled on Profit to Pursue Merger, Investor Says (1)

Accolade Inc.'s CEO made misleadingly positive comments about the health technology company’s financial position and prospects to inflate its value for an acquisition, an investor alleges.

When the company “had to reveal the truth” in June 2024, its stock dropped 44%, Madera Technology Master Fund Ltd. says. The fund filed the complaint Thursday on behalf of itself, not a proposed class, in the US District Court for the Southern District of New York, claiming a $4.8 million loss.

After Accolade went public in 2020, it “consistently reported losses in each of the first three quarters of its fiscal year” and ...