San Diego, CA -- (SBWIRE) -- 03/15/2021 -- An investor, who purchased shares of Ontrak, Inc. (NASDAQ: OTRK), filed a lawsuit against Ontrak, Inc over alleged violations of Federal Securities Laws.

Investors who purchased shares of Ontrak, Inc. (NASDAQ: OTRK) have certain options and for certain investors are short and strict deadlines running. Deadline: May 3, 2021. NASDAQ: OTRK investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Santa Monica, CA based Ontrak, Inc. operates as an artificial intelligence powered, virtualized outpatient healthcare treatment company that provides in-person or telehealth intervention services to health plans and other third-party payors. On March 1, 2021, Ontrak, Inc. announced preliminary financial results for fourth quarter and full year 2020.

Furthermore, Ontrak, Inc. stated that its largest customer had terminated its contract with Ontrak, effective June 26, 2021. The Company stated that this customer "evaluated Ontrak on a provider basis" and "[a]s such, the customer evaluated [Ontrak's] performance based on [its] ability to achieve the lowest possible cost per medical visit, and not on [its] clinical outcomes data or medical cost savings." The Company also stated that "the coaching model which Ontrak has pioneered for over a decade was seen by the customer to be less relevant to their performance metrics."

Shares of Ontrak, Inc. (NASDAQ: OTRK) declined from $98.90 per share on February 9, 2021, to as low as $22.13 per share on March 5, 2021.

The plaintiff claims that between November 5, 2020 and February 26, 2021, the Defendants failed to disclose to investors that Ontrak's largest customer evaluated the Company on a provider basis, valuing Ontrak's performance based on achieving the lowest cost per medical visit rather than clinical outcomes or medical cost savings, that, as a result, Ontrak's largest customer did not find the Company's program to be effective and was reasonably likely to terminate its contract with Ontrak, that, because this customer accounted for a significant portion of the Company's revenue, the loss of the customer would have an outsized impact on Ontrak's financial results, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Ontrak, Inc. (NASDAQ: OTRK) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.