NEW YORK, Sept. 14, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in LifeStance Health Group, Inc. (“LifeStance” or the “Company”) LFST. Those investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, extension 7980.

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

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On approximately June 10, 2021, LifeStance completed its initial public offering (“IPO”), selling 46 million shares at a price of $18.00 per share. On August 11, 2021, less than two months after the IPO, LifeStance reported its second quarter 2021 (“2Q21”) financial results for the period ended June 30, 2021 (just days after the IPO) and reported a net loss of $70 million compared to a net loss of just $27.6 million for the period April 1, 2020 to May 14, 2020 and $4.3 million for the period ending April 13, 2020 through June 30, 2020. Crucially, during the second quarter of ’21, the company’s operating expenses had more than tripled. LifeStance also forecast full-year 2021 total revenues of just $668-$678 million ($168-$173 million in Q3 2021 and $196-$201 million in Q4 2021) and Adjusted EBITDA of just $47 million to $53 million ($8 million to $11 million in Q3 2021 and $12 million to $15 million in Q4 2021).

The company also announced on August 11, 2021 that it had experienced a significant, negative “recent change in employee retention rates” in Q2 2021.

Then, on November 8, 2021, the Company reported its third quarter 2021 results, now stating in its press release that “[c]clinical retention [had] stabilized at approximately 80% annualized in the third quarter.” The company further disclosed that LifeStance also increased spending on “expanded…