GoHealth Must Face Investor Allegations on 2020 Public Offering

GoHealth Inc. failed to shake allegations it made misleading statements about business strategy changes ahead of a 2020 initial public offering, after a federal judge in Illinois said investors sufficiently alleged securities violations.

Investors say the health insurance marketplace omitted information about plans to substantially expand its carrier base from a registration statement issued in connection with the IPO. The would-be class complaint plausibly alleged GoHealth misleadingly failed to disclose some information, the U.S. District Court for the Northern District of Illinois said.

GoHealth argued that the investors didn’t allege any actionable misstatements or omissions. The complaint plausibly alleged ...