Oscar Health Misled on Covid Costs Before IPO, Investors Say

Oscar Health Inc. misled investors about its growing Covid-19 testing and treatment costs ahead of its March 2021 initial public offering, a new suit alleges in federal court in New York.

The technology platform-based health insurance company didn’t tell investors that it was experiencing growing net pandemic-related costs and other issues negatively affecting its finances, according to a would-be class complaint filed in the US District Court for the Southern District of New York.

Oscar Health in August 2021 revealed that its second quarter medical loss ratio increased to 82.4% from 60.7% during the same period a year earlier, in ...