Mobile Healthcare Company DocGo Faces Federal Lawsuit from Investors after CEO Resigns and Stock Plummets

ALBANY, New York — A federal class action lawsuit has been filed against mobile health care company DocGo, which was contracted by New York City to provide care for migrants. The lawsuit alleges that DocGo and its executives defrauded investors in violation of the federal Exchange Act, leading to significant financial losses. The company’s stock declined following a series of issues, including the resignation of its CEO, Anthony Capone.

One potential lead plaintiff in the lawsuit is Joe Naclerio, a resident of Putnam County. Naclerio purchased 500 shares of DocGo stock, making him a significant investor. The law firm representing Naclerio argues that DocGo’s executive hiring processes were inadequate and that the company had overstated the effectiveness of its services. The lawsuit also highlights discrepancies between DocGo’s representations to investors and the reality of its $432 million contract with New York City.

The case against DocGo raises concerns about the quality of medical care and access to legal services for migrants. Previous reports have detailed the challenges faced by migrants in receiving adequate care and the misrepresentation of federal contracts by DocGo’s former CEO. The law firm representing the plaintiffs asserts that DocGo’s stock prices were artificially inflated and that the contract with New York City accounted for the majority of the company’s revenue in 2022.

In addition to Naclerio, the Genesse County Employees’ Retirement System in Michigan is also seeking to become the lead plaintiff in the lawsuit. Meanwhile, Capone, who previously resigned due to the falsification of his professional biography, has returned to the company as a consultant for a significant fee.

The federal class action lawsuit against DocGo highlights alleged fraud and misrepresentation by the mobile health care company. Investors claim substantial financial losses as a result of these actions. The case also sheds light on the challenges faced by migrants in accessing adequate medical care and legal services.