Bright Health Investor Gets Lawsuit Over Backlog Reinstated

Bright Health Group Inc. investors sufficiently alleged the health insurance company now known as NeueHealth Inc. overstated its ability to process claims and predict costs, the Second Circuit said in reviving the suit Thursday.

Former employee accounts and retrospective company admissions about claims processing support the investors’ allegations that business risks characterized as merely potential in Bright Health’s initial public offering documents had already materialized, the US Court of Appeals for the Second Circuit said. Those sources also showed the issues were “knowable” to the company’s leadership at the time of the IPO, the appeals court said in an unsigned, ...