NEW YORK, April 24, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of GoodRx Holdings, Inc. (“GoodRx” or the “Company”) (NASDAQ: GDRX). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether GoodRx and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

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On May 9, 2022, GoodRx revealed that, late in the first quarter of 2022, “a grocery chain had taken actions that impacted acceptance of discounts from most PBMs [pharmacy benefit managers] for a subset of drugs” and that this “impacted the acceptance of many PBM discounts for certain drugs at this grocer’s stores.” GoodRx further acknowledged that this disruption “could have an estimated revenue impact of roughly $30 million” in the second quarter of 2022—resulting in the Company announcing disappointing second quarter 2022 revenue guidance of only about $190 million. In the accompanying investor earnings call held that same day, GoodRx’s Co-Chief Executive Officer Trevor Bezdek admitted that the use of GoodRx discounts at the “grocery chain” were responsible for nearly 25% of GoodRx’s prescription transactions revenue. While the Company refused to identify the grocer by name, analysts and media outlets quickly recognized that the unnamed grocery chain was Kroger.

On this news, GoodRx’s stock price fell $2.78 per share, or more than 25%, to close at $7.97 per share on May 10, 2022.

Then, on November 8, 2022, GoodRx provided further information on the severity of the revenue impact from the Kroger disruption, estimating that the “impact of the grocer issue on third quarter [prescription transactions revenue] was approximately $40 million” and that the Company expected “a combined $45 million to $50 million estimated impact to prescription transactions revenue” for the fourth quarter of 2022. GoodRx further acknowledged that the Company was seeking to enter into contractual relationships with pharmacies to prevent similar disruptions from occurring in the future.

On this news, GoodRx’s stock price fell another $1.18 per share, or more than 22%, to close at $4.06 per share on November 9, 2022.

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CONTACT:

Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980