Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against LifeStance Health Group, Inc. (LFST)

Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming October 11, 2022 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired LifeStance Health Group, Inc. (“LifeStance” or the “Company”) (NASDAQ: LFST) common stock pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with LifeStance’s June 10, 2021 initial public stock offering (the “IPO”).

If you suffered a loss on your LifeStance investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/lifestance-health-group-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [e-mail] to learn more about your rights.

On or about June 11, 2021, LifeStance conducted its IPO, issuing 46 million shares at $18 per share.

On August 11, 2021, LifeStance announced its financial results for second quarter 2021, which ended just days after the IPO. The Company reported a net loss of $70 million and also disclosed that its operating expenses had more than tripled during the second quarter. LifeStance stated that it had experienced a significant, negative “recent change in clinician retention levels.”

On this news, the Company’s stock price fell $10.16, or 46%, to close at $11.71 per share on August 12, 2021, thereby injuring investors.

Then, on November 8, 2021, LifeStance released its third quarter 2021 financial results, disclosing that “[c]linician retention [had] stabilized to approximately 80% annualized in the third quarter,” and that the Company was having to increase spending on “enhanced clinician engagement and continued support for workplace and work-life flexibility.”

On this news, the Company’s stock price fell $3.10, or 24%, to close at $9.73 per share on November 9, 2021, thereby injuring investors further.

Then, on March 10, 2022, LifeStance reported its fiscal 2021 results, stating that a recent study had shown that three quarters of mental health patients prefer in-person services and that through 2021, telehealth services trended downwards. Additionally, the Company stated that it would be reducing the number of brick and mortar facilities that it would be building in the immediate future in order to increase its profitability.