NEW YORK, Oct. 30, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired DocGo, Inc. (“DocGo” or the “Company”) (NASDAQ: DCGO) securities between November 8, 2022 and September 17, 2023, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) DocGo’s executive hiring processes were inadequate to fully review and vet the professional and academic backgrounds of job candidates; (ii) this increased the likelihood of disruptive executive turnover; (iii) contrary to DocGo’s representations to investors, DocGo had overstated the efficacy of its mobile health and medical transportation services; and (iv) all of the above, once revealed, was likely to subject DocGo to significant reputational and/or regulatory scrutiny that would negatively impact DocGo’s financial position and/or prospects. On July 30, 2023, The New York Times, published an article reporting that “[l]ocal authorities have expressed frustration at the lack of coordination between DocGo and agencies that could provide services to the migrants; local security guards hired by DocGo have repeatedly threatened the migrants; and finding steady work has been nearly impossible.” Following the publication of The New York Times article, the price of DocGo stock fell more than 6%.

Then, on September 6, 2023, New York City Comptroller Brad Lander announced that his office was declining to approve the Relocation Contract. According to the Complaint, New York City Mayor Eric Adams had the authority to proceed with the Relocation Contract over Comptroller Lander’s objections and ultimately did so. On this news, the price of DocGo stock fell more than 7%. Further, on September 14, 2023, the Albany Times Union published an article reporting that former DocGo CEO, defendant Anthony Capone, had falsified portions of his professional biography regarding his educational history. According to the Complaint, on the following day, September 15, 2023, DocGo disclosed Capone’s resignation as CEO. On this news, the price of DocGo stock fell nearly 12%.

Investors who purchased or otherwise acquired shares of DocGo should contact the Firm prior to the December 26, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.

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