PR Newswire
Important Information Regarding Section 20(a) Individual Liability Claims Against Phreesia Executives Who Certified Financial Disclosures During the Class Period
NEW YORK, June 3, 2026 /PRNewswire/ — Two senior executives of Phreesia, Inc. (NYSE: PHR) are named as individual defendants in a securities class action alleging they personally controlled the company’s materially misleading public statements about fiscal year 2027 revenue growth projections. Find out if you qualify to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Phreesia shares fell $3.03 per share, a decline of approximately 27%, after the Company slashed its fiscal 2027 revenue guidance from $545-$559 million to $510-$520 million on March 30, 2026. The Court has set July 13, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
The complaint identifies Chaim Indig, Chief Executive Officer and Director, and Balaji Gandhi, Chief Financial Officer, as individual defendants under Section 20(a) of the Securities Exchange Act of 1934. Both executives held their positions throughout the entire Class Period of May 8, 2025 through March 30, 2026 and are alleged to have possessed the power and authority to control Phreesia’s SEC filings, press releases, and presentations to analysts and institutional investors.
Section 20(a) Control Person Framework
Section 20(a) imposes joint and several liability on every person who directly or indirectly controls any person liable under the Exchange Act. The complaint asserts that both executives:
- Possessed authority to control the content of Phreesia’s SEC filings and earnings communications
- Were provided with copies of allegedly misleading reports and press releases prior to or shortly after issuance
- Had the ability and opportunity to prevent issuance of false statements or cause them to be corrected
- Had access to material non-public information about weakening pharmaceutical marketing commitments in Network Solutions
- Knew that adverse facts had not been disclosed to the investing public
- Are liable for “group-published” information resulting from their collective actions
Sarbanes-Oxley Certification Obligations
Under Sections 302 and 906 of the Sarbanes-Oxley Act, both Indig and Gandhi were required to personally certify the accuracy of Phreesia’s periodic SEC filings. These certifications carry personal liability and require each officer to attest that filings do not contain untrue statements of material fact or omit material facts necessary to make the statements not misleading. The complaint contends these certifications were made while both executives knew that Phreesia’s portrayal of pharmaceutical marketing commitments as a durable growth driver was uncertain, putting the fiscal 2027 revenue target at risk.
Scienter Allegations
The action charges that each Individual Defendant, because of their positions and access to material non-public information, knew that positive representations about Network Solutions visibility and fiscal 2027 revenue projections were materially false or misleading when made. The pleading asserts that concealed information included worsening visibility into pharmaceutical manufacturer spending commitments and clients committing lower spend levels than anticipated.
“Corporate officers have a duty to ensure their companies’ public statements are accurate and complete. When executives certify SEC filings under Sarbanes-Oxley, they accept personal responsibility for the truthfulness of those disclosures.” — Joseph E. Levi, Esq.
Find out if you qualify to recover losses or call Joseph E. Levi, Esq. at (212) 363-7500.
Levi & Korsinsky, LLP — Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
Frequently Asked Questions About the PHR Lawsuit
Q: Who are the defendants named in the PHR lawsuit? A: The complaint names Phreesia, Inc. and individual defendants including CEO Chaim Indig and CFO Balaji Gandhi, who signed SEC filings and certified financial disclosures under Sarbanes-Oxley during the Class Period.
Q: What specific misstatements does the PHR lawsuit allege? A: The complaint alleges Phreesia made materially false or misleading statements regarding its fiscal year 2027 revenue growth projections, concealing slowing demand and reduced visibility in pharmaceutical marketing commitments within the Network Solutions segment. When the true state was revealed on March 30, 2026, the stock price declined sharply.
Q: What do PHR investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my PHR shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the Class Period and sold at a loss may still participate.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
