DocGo investor hits company with class-action lawsuit

The hits keep coming for embattled health company DocGo.

An investor filed a proposed class-action lawsuit Friday against the company and five current and former members of its top brass, aiming to recover losses they suffered after negative news coverage last month led DocGo's stock price to plummet.

In September, CEO Anthony Capone resigned amid growing scrutiny from officials in New York City as well as the state over its migrant care contract with the city. Capone also faced allegations that he falsely represented his educational background.

"Throughout the class period, defendants made materially false and misleading statements regarding the Company’s business, operations and prospects," according to the lawsuit.

A DocGo spokesperson said in a statement that the company is planning to disprove the lawsuit's claims in court.

“We reject the accusations of the recently filed securities lawsuit, which follows a pattern of litigation filed reflexively after stock-price declines," the spokesperson said. "We look forward to refuting the claims in court. In the meantime, we remain focused on our mission of delivering high quality, highly accessible care to all.”

DocGo provides mobile health and transportation to providers and payers across the country and in the U.K.

The suit accuses DocGo of overstating the effectiveness of its services and failing to fully vet candidates for top jobs.

"DocGo’s executive hiring processes were inadequate to fully review and vet the professional and academic backgrounds of job candidates," according to the suit.

The lawsuit includes just one named investor at present, who purchased 500 DocGo shares between November 2022 and March 2023. It argues, though that "there are hundreds or thousands of members in the proposed class."

Editor's note: This story has been updated to include a statement from DocGo.