LifeStance Investors Win Approval of $50 Million Settlement (1)

Mental health services provider LifeStance Health Group Inc. will pay $50 million to end a lawsuit alleging the company misled investors about its clinician retention rate.

Judge Jed Rakoff in the US District Court for the Southern District of New York gave the deal final approval Tuesday, finding it was “fair, reasonable, and adequate.”

The settlement ends litigation that began in August 2022. LifeStance, which went public in June 2021, saw its share price drop over 46% a couple months later when the company reduced its expected profits because of its struggles in retaining clinicians, the lawsuit said.

Investors said ...