Oscar Health Gets Dismissal of Investor Suit Over Cost Metrics

Oscar Health Inc. investors can’t proceed with a would-be class action alleging the health insurer’s initial public offering papers misrepresented its systems for assessing cost risks, a federal court ruled Thursday.

The investors’ complaint “fails to sufficiently plead any material misstatements or omissions regarding the adequacy of Oscar’s internal controls,” said Judge Vernon S. Broderick of the US District Court for the Southern District of New York, referring to its systems for submitting “risk adjustment” data for a government audit.

The “mere fact that Oscar incurred this risk adjustment expense following the audit is insufficient to establish that Oscar, in ...