Evolent Gets First Nod for $23.5 Million Investor Class Deal

Evolent Health Inc., and investors who say the company misrepresented the nature of its “partnership” with Passport Health Plan and caused a stock drop, have received preliminary approval for their proposed $23.5 million class settlement from a federal court in Virginia.

The proposal appears fair and reasonable, Judge Michael S. Nachmanoff said in an order entered Wednesday in the docket of the US District Court for the Eastern District of Virginia.

Evolent allegedly failed to indicate its investments in customers such as University Health Care Inc., which did business as Passport, thereby disguising weaknesses in its business plan, according to ...