Did You Invest in GoodRx? Here's What You Need to Know About the Recent Lawsuit

GoodRx, a platform that helps people find discounts on prescription drugs, is facing a class action lawsuit from investors. The lawsuit alleges that GoodRx misled investors about its reliance on a specific grocery chain (reported to be Kroger) for a significant portion of its revenue. Here's a breakdown of the situation in simpler terms:

What GoodRx does

GoodRx helps people find coupons and discounts for prescription medications, potentially saving them money on their essential drugs. They also offer subscription plans like the "Kroger Rx Savings Club" for additional discounts at Kroger pharmacies. This can be a valuable tool for consumers looking to stretch their healthcare budget.

The lawsuit's claims

Investors are suing GoodRx, claiming they weren't given all the information they needed to make informed investment decisions. Here's the crux of the issue:

• Overdependence on Kroger: The lawsuit alleges GoodRx didn't properly disclose how much revenue came from Kroger purchases, even though Kroger only accounted for a small percentage of pharmacies using GoodRx discounts. This lack of transparency is a key point of contention. Investors argue they weren't aware of how heavily GoodRx relied on a single source of income.

• Potential Loss of Revenue: The lawsuit claims GoodRx failed to mention that Kroger could stop accepting GoodRx discounts at any time, which could significantly hurt their business. This highlights a potential risk that investors may not have been fully aware of.

When did things change?

The lawsuit points to two specific dates when information came to light that allegedly impacted GoodRx's stock price:

• May 9, 2022: GoodRx revealed that a major grocery chain (believed to be Kroger) took actions impacting the acceptance of discounts for certain drugs. This disruption was estimated to cost GoodRx around $30 million in revenue. Following this news, the price of GoodRx stock reportedly dropped more than 25%.

• November 8, 2022: GoodRx estimated the impact of the grocery chain issue on their revenue had grown to around $40 million and was expected to continue impacting them in the coming months. Additionally, the company acknowledged they were seeking contracts with pharmacies to prevent similar disruptions in the future. This further news allegedly caused another significant drop in GoodRx's stock price, exceeding 22%.

What this means for you

If you invested in GoodRx between September 23, 2020 and November 8, 2022: You may be included in the class action lawsuit.

• It's important to note: This is just a lawsuit, and no wrongdoing has been proven yet. The court will decide if the claims have merit.

What you can do

• Stay informed: Injury Claims will keep you updated on this developing lawsuit. We'll provide summaries of important developments so you can stay informed. Sign up for updates on this case here.

• Consult a financial advisor: If you have questions about your investment in GoodRx, consider talking to a financial advisor for personalized advice. They can help you understand the potential implications of this lawsuit for your specific situation.

Remember: This lawsuit is ongoing, and it may take time to reach a resolution. However, by understanding the situation, you can make informed decisions about your next steps. The outcome of this lawsuit could potentially impact both investors in GoodRx and consumers who rely on the platform for prescription drug discounts.