Multiple law firms have filed a class-action lawsuit against Phreesia, Inc., alleging the company made misleading statements about its revenue streams. The lawsuit follows a significant drop in the company's stock price after it lowered its fiscal 2027 revenue guidance. Investors who purchased stock between May 8, 2025, and March 30, 2026, are included in the class period.
A class-action lawsuit has been filed against Phreesia, Inc. after the company’s stock fell 27% on March 31, 2026, following a downward revision of its revenue forecast.
"According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of Phreesia's slowing demand and reduced visibility in key revenue streams," a statement from Rosen Law Firm said.
The lawsuit covers investors who purchased Phreesia common stock between May 8, 2025, and March 30, 2026. On March 30, 2026, Phreesia announced significantly reduced revenue growth projections for fiscal 2027, citing "worsening visibility" and weaker pharmaceutical marketing commitments. The company's stock price fell $3.03 per share, or 26.56%, to close at $8.38 per share the following day.
The legal action seeks to recover damages for investors who lost money due to the alleged misrepresentations. The deadline for investors to move the Court to serve as lead plaintiff is July 13, 2026.
The lawsuits, filed by firms including Rosen Law Firm, Pomerantz LLP, and Glancy Prongay Wolke & Rotter LLP, center on allegations that Phreesia failed to disclose adverse facts about its Network Solutions segment. The company's lowered guidance for fiscal 2027 was attributed to a combination of macroeconomic factors and weaker demand from pharmaceutical marketing clients.
The sharp decline in Phreesia's stock price reflects investor reaction to the revised outlook, which contradicted previous statements. The legal proceedings will now examine the extent to which the company's disclosures painted an accurate picture of its financial health during the class period.
This development puts Phreesia's management and financial reporting under scrutiny. Investors will be watching for the company's response to the allegations and any further updates on its fiscal performance ahead of the July 13 lead plaintiff deadline.
This article is for informational purposes only and does not constitute investment advice.
