Oak Street Health Settles Investors’ Probe Suit for $60 Million

Oak Street Health Inc. has reached a $60 million settlement of securities claims over a marketing approach that allegedly led to a government investigation over kickbacks, investors told a federal court.

The agreement merits preliminary approval, the lead plaintiffs told the US District Court for the Northern District of Illinois. The deal would recover nearly 16% of the investors’ $386 million in recoverable damages as estimated by their expert, according to the Aug. 16 filing.

• The investors allege that as Covid-19 shutdowns halted Oak Street’s community outreach to new Medicare Advantage patients, it began to pay marketing agents $200 per ...