{"id":474316,"date":"2021-04-09T12:44:08","date_gmt":"2021-04-09T16:44:08","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=474316"},"modified":"2021-04-09T12:44:08","modified_gmt":"2021-04-09T16:44:08","slug":"root-inc-reminder-kessler-topaz-meltzer-check-llp-reminds-investors-of-securities-fraud-class-action-lawsuit-filed-against-root-inc","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/root-inc-reminder-kessler-topaz-meltzer-check-llp-reminds-investors-of-securities-fraud-class-action-lawsuit-filed-against-root-inc\/","title":{"rendered":"Root, Inc. Reminder:  Kessler Topaz Meltzer &amp; Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Root, Inc."},"content":{"rendered":"<div class=\"xn-newslines\">\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p \/>\n<p>\n        <span class=\"xn-location\">RADNOR, Pa.<\/span>, <span class=\"xn-chron\">April 9, 2021<\/span> \/PRNewswire\/ &#8212;\u00a0The law firm of Kessler Topaz Meltzer &amp; Check, LLP reminds Root, Inc. (NASDAQ:\u00a0 ROOT) (&#8220;Root&#8221;) investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired: <b><i>(a) Root securities between <span class=\"xn-chron\">October 28, 2020<\/span> and <span class=\"xn-chron\">March 8, 2021<\/span>, both dates inclusive (the &#8220;Class Period&#8221;); and\/or (b) Root Class A common stock issued in connection with Root&#8217;s initial public offering conducted on or about <span class=\"xn-chron\">October 28, 2020<\/span> (the &#8220;IPO&#8221;)<\/i><\/b>.<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder1\">\n<p>\n          <a href=\"https:\/\/mma.prnewswire.com\/media\/277422\/ktmc_Logo.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><br \/>\n            <img decoding=\"async\" src=\"https:\/\/mma.prnewswire.com\/media\/277422\/ktmc_Logo.jpg\" title=\"KTMC (PRNewsFoto\/Kessler Topaz Meltzer &amp; Check)\" alt=\"KTMC (PRNewsFoto\/Kessler Topaz Meltzer &amp; Check)\" \/><br \/>\n          <\/a>\n        <\/p>\n<\/p><\/div>\n<p>\n        <b><br \/>\n          <i>Shareholder Deadline Reminder:\u00a0 Investors who purchased or acquired Root securities<\/i><br \/>\n        <\/b><br \/>\n        <b><br \/>\n          <i>during the Class Period may, <u>no later than <span class=\"xn-chron\">May 18, 2021<\/span><\/u>, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer &amp; Check, LLP:\u00a0 <span class=\"xn-person\">James Maro, Esq.<\/span> (484) 270-1453 or <span class=\"xn-person\">Adrienne Bell, Esq.<\/span> (484) 270-1435; toll free at (844) 887-9500; via e-mail at<\/i><br \/>\n        <\/b><br \/>\n        <a target=\"_blank\" href=\"mailto:info@ktmc.com\" rel=\"nofollow noopener noreferrer\">info@ktmc.com<\/a>; <b>or<\/b><b><i>click <\/i><\/b><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3124120-1&amp;h=1173948106&amp;u=https%3A%2F%2Fwww.ktmc.com%2Froot-inc-class-action-lawsuit%3Futm_source%3DPR%26utm_medium%3Dlink%26utm_campaign%3Droot&amp;a=https%3A%2F%2Fwww.ktmc.com%2Froot-inc-class-action-lawsuit%3Futm_source%3DPR%26utm_medium%3Dlink%26utm_campaign%3Droot\" rel=\"nofollow noopener noreferrer\">https:\/\/www.ktmc.com\/root-inc-class-action-lawsuit?utm_source=PR&amp;utm_medium=link&amp;utm_campaign=root<\/a><b>. <\/b><\/p>\n<p>Root provides insurance products and services in <span class=\"xn-location\">the United States<\/span>. Root has historically focused on auto insurance and operates a direct-to-consumer model that serves customers primarily through mobile applications, as well as through Root&#8217;s website.\u00a0 Leading up to and following the IPO, Root described itself as an innovator in the personal insurance space with a new data- and technology-driven business model that was ready to disrupt traditional insurance markets and capture disproportionate market share, in part because of Root&#8217;s telematics-driven approach to insurance\u2014i.e., the collection and transmission of vehicle-use data through devices. <\/p>\n<p>On <span class=\"xn-chron\">October 5, 2020<\/span>, Root filed a registration statement on a Form S-1 with the Securities and Exchange Commission (&#8220;SEC&#8221;) in connection with the IPO, which, after several amendments, was declared effective on <span class=\"xn-chron\">October 27, 2020<\/span> (the &#8220;Registration Statement&#8221;).\u00a0 On <span class=\"xn-chron\">October 28, 2020<\/span>, Root conducted the IPO, selling 26.8 million shares of its Class A common stock to the public at <span class=\"xn-money\">$27.00<\/span> per share for total approximate proceeds of <span class=\"xn-money\">$724.43 million<\/span>. On <span class=\"xn-chron\">October 29, 2020<\/span>, Root filed a prospectus on a Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the &#8220;Prospectus&#8221; and, together with the Registration Statement, the &#8220;Offering Documents&#8221;).\u00a0 Throughout the Class Period, the defendants misrepresented Root&#8217;s cash flow needs and auto-insurance business prospects. <\/p>\n<p>The truth about Root&#8217;s cash flow needs and auto-insurance business prospects was revealed on <span class=\"xn-chron\">March 9, 2021<\/span>, when Bank of America Securities analyst <span class=\"xn-person\">Joshua Shanker<\/span> (&#8220;Shanker&#8221;) initiated coverage of Root with an &#8220;Underperform&#8221; rating on the premise that Root is unlikely to be cash flow positive until 2027, finding that Root &#8220;will require not insignificant cash infusions from the capital markets to bridge its cash flow needs.&#8221; Shanker also noted that insurers Progressive, Allstate, and Berkshire Hathaway&#8217;s Geico would continue to impede Root&#8217;s profitability, with Progressive and Allstate having a &#8220;sizable advantage over Root in terms of amount of [telematics] data as well as engagement with the data&#8221; used to price their auto insurance. <\/p>\n<p>Following this news, Root&#8217;s stock price fell <span class=\"xn-money\">$0.18<\/span> per share, or 1.46%, to close at <span class=\"xn-money\">$12.17<\/span> per share on <span class=\"xn-chron\">March 9, 2021<\/span>, representing a total decline of 54.93% from the offering price. <\/p>\n<p>The complaint alleges that the Offering Documents and the defendants made false and\/or misleading statements and\/or failed to disclose that: (i) Root would foreseeably fail to generate positive cash flow for at least several years following the IPO; (ii) accordingly, Root would foreseeably require significant cash infusions to meet its cash flow needs; (iii) notwithstanding the defendants&#8217; touting of Root&#8217;s purportedly unique, data-driven advantages, several of Root&#8217;s established industry peers in fact possessed significant competitive advantages over Root with respect to, <i>inter alia<\/i>, telematics data and data engagement; and (iv) as a result, the Offering Documents and the defendants&#8217; public statements throughout the Class Period were materially false and\/or misleading and failed to state information required to be stated therein.<\/p>\n<p>Root<b>\u00a0<\/b>investors may, <b><i><u>no later than <span class=\"xn-chron\">May 18, 2021<\/span><\/u><\/i><\/b>, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer &amp; Check, LLP or other counsel, or may choose to do nothing and remain an absent class member.\u00a0 A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation.\u00a0 In order to be appointed as a lead plaintiff, the Court must determine that the class member&#8217;s claim is typical of the claims of other class members, and that the class member will adequately represent the class.\u00a0 Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.<\/p>\n<p>Kessler Topaz Meltzer &amp; Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer &amp; Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from <span class=\"xn-location\">the United States<\/span> and around the world. \u00a0The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars).\u00a0 The complaint in this action was not filed by Kessler Topaz Meltzer &amp; Check, LLP. For more information about Kessler Topaz Meltzer &amp; Check, LLP please visit <a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3124120-1&amp;h=1739578403&amp;u=http%3A%2F%2Fwww.ktmc.com%2F&amp;a=www.ktmc.com\" rel=\"nofollow noopener noreferrer\">www.ktmc.com<\/a>.<\/p>\n<p>CONTACT:<br \/>Kessler Topaz Meltzer &amp; Check, LLP<br \/><span class=\"xn-person\">James Maro, Jr., Esq.<\/span><br \/><span class=\"xn-person\">Adrienne Bell, Esq.<\/span><br \/>280 King of Prussia Road<br \/><span class=\"xn-location\">Radnor, PA<\/span> 19087<br \/>(844) 887-9500 (toll free)<br \/><a target=\"_blank\" href=\"mailto:info@ktmc.com\" rel=\"nofollow noopener noreferrer\">info@ktmc.com<\/a><\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder2\"><\/div>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=DC37543&amp;sd=2021-04-09\" \/> View original content to download multimedia:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/root-inc-reminder--kessler-topaz-meltzer--check-llp-reminds-investors-of-securities-fraud-class-action-lawsuit-filed-against-root-inc-301265754.html\">http:\/\/www.prnewswire.com\/news-releases\/root-inc-reminder&#8211;kessler-topaz-meltzer&#8211;check-llp-reminds-investors-of-securities-fraud-class-action-lawsuit-filed-against-root-inc-301265754.html<\/a><\/p>\n<p>SOURCE  Kessler Topaz Meltzer &amp; Check, LLP<\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=DC37543&amp;Transmission_Id=202104091241PR_NEWS_USPR_____DC37543&amp;DateId=20210409\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PR Newswire RADNOR, Pa., April 9, 2021 \/PRNewswire\/ &#8212;\u00a0The law firm of Kessler Topaz Meltzer &amp; Check, LLP reminds Root, Inc. (NASDAQ:\u00a0 ROOT) (&#8220;Root&#8221;) investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired: (a) Root securities between October 28, 2020 and March 8, 2021, both dates inclusive (the &#8220;Class Period&#8221;); and\/or (b) Root Class A common stock issued in connection with Root&#8217;s initial public offering conducted on or about October 28, 2020 (the &#8220;IPO&#8221;). Shareholder Deadline Reminder:\u00a0 Investors who purchased or acquired Root securities during the Class Period may, no later than May 18, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/root-inc-reminder-kessler-topaz-meltzer-check-llp-reminds-investors-of-securities-fraud-class-action-lawsuit-filed-against-root-inc\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Root, Inc. Reminder:  Kessler Topaz Meltzer &amp; Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Root, Inc.&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-474316","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Root, Inc. 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(NASDAQ:\u00a0 ROOT) (&#8220;Root&#8221;) investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired: (a) Root securities between October 28, 2020 and March 8, 2021, both dates inclusive (the &#8220;Class Period&#8221;); and\/or (b) Root Class A common stock issued in connection with Root&#8217;s initial public offering conducted on or about October 28, 2020 (the &#8220;IPO&#8221;). Shareholder Deadline Reminder:\u00a0 Investors who purchased or acquired Root securities during the Class Period may, no later than May 18, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information &hellip; Continue reading &quot;Root, Inc. 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(NASDAQ:\u00a0 ROOT) (&#8220;Root&#8221;) investors that a securities fraud class action lawsuit has been filed on behalf of those who purchased or acquired: (a) Root securities between October 28, 2020 and March 8, 2021, both dates inclusive (the &#8220;Class Period&#8221;); and\/or (b) Root Class A common stock issued in connection with Root&#8217;s initial public offering conducted on or about October 28, 2020 (the &#8220;IPO&#8221;). Shareholder Deadline Reminder:\u00a0 Investors who purchased or acquired Root securities during the Class Period may, no later than May 18, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information &hellip; Continue reading \"Root, Inc. Reminder: Kessler Topaz Meltzer &amp; Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Root, Inc.\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/root-inc-reminder-kessler-topaz-meltzer-check-llp-reminds-investors-of-securities-fraud-class-action-lawsuit-filed-against-root-inc\/","og_site_name":"Market Newsdesk","article_published_time":"2021-04-09T16:44:08+00:00","og_image":[{"url":"https:\/\/mma.prnewswire.com\/media\/277422\/ktmc_Logo.jpg","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/root-inc-reminder-kessler-topaz-meltzer-check-llp-reminds-investors-of-securities-fraud-class-action-lawsuit-filed-against-root-inc\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/root-inc-reminder-kessler-topaz-meltzer-check-llp-reminds-investors-of-securities-fraud-class-action-lawsuit-filed-against-root-inc\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"Root, Inc. 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