DocGo Inc. (NASDAQ: DCGO) Investor Reminder: Schubert Jonckheer Investigating Possible False Claims, $4 Million in Stock Sales

Rhea-AI Summary

DocGo (NASDAQ: DCGO) faces a significant legal investigation by Schubert Jonckheer & Kolbe LLP regarding alleged false statements and insider trading. A federal judge has allowed key claims in a securities fraud lawsuit to proceed, focusing on alleged misrepresentations about the former CEO's educational background and business operations.

The lawsuit claims that between April 2022 and September 2023, DocGo made misleading statements about the CEO's graduate degree and misrepresented relationships with UnitedHealthcare and Medicaid enrollment programs in New York. During this period, insiders sold approximately $4 million in company stock. The stock price dropped 25% after these revelations came to light in September 2023.

Positive

• None.

Negative

• Federal judge ruled securities fraud lawsuit claims can proceed against DocGo
• Company allegedly made false statements about CEO's educational background and business operations
• Insiders sold $4 million in stock during the period of alleged misrepresentations
• Stock price fell 25% after revelations
• Alleged false claims about UnitedHealthcare contract and Medicaid enrollment programs

Insights

Legal Analyst

Judge allowing securities fraud claims against DocGo to proceed poses significant legal and financial risks to the company.

The advancement of key claims in a securities fraud lawsuit against DocGo represents a significant legal development with potential far-reaching consequences. Judge Katherine Polk Failla's ruling that allegations of "indisputably false" statements were made with fraudulent intent creates substantial legal exposure for the company. The lawsuit centers on three critical misrepresentations: falsely claiming the former CEO had a graduate degree, misrepresenting migrant enrollment in Medicaid programs, and fabricating a business relationship with UnitedHealthcare.

The timing of insider stock sales totaling approximately $4 million during the period of alleged misrepresentations raises serious concerns about potential securities violations. When executives sell shares while in possession of material non-public information or during periods when misleading statements artificially inflate stock prices, this can constitute securities fraud under SEC Rule 10b-5.

The 25% stock price drop following the revelations demonstrates material impact on shareholder value. With the court allowing the case to proceed past the motion to dismiss stage - a significant hurdle in securities litigation - DocGo now faces expensive discovery proceedings, potential settlement negotiations, and the possibility of substantial damages. This legal challenge could divert management attention, deplete financial resources, and potentially trigger additional regulatory scrutiny from the SEC. The investigation by Schubert Jonckheer & Kolbe suggests possible derivative claims against directors and officers, which could further compound DocGo's legal troubles.

SAN FRANCISCO, Aug. 4, 2025 /PRNewswire/ -- Schubert Jonckheer & Kolbe LLP reminds DocGo Inc. (NASDAQ: DCGO) investors that the firm is investigating potential legal claims relating to alleged false statements about the educational background of DocGo's former CEO and the company's business development efforts, and about $4 million in insider stock sales. Current shareholders are encouraged to contact the firm.

DocGo Inc. (NASDAQ: DCGO) Investor Alert: If you own stock in DocGo, you may have legal options.

On March 28, 2025, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York ruled that key claims in a securities fraud lawsuit against DocGo and its former CEO could move forward. The lawsuit alleges that between April 2022 and September 2023, DocGo misled investors by stating that its former CEO had a graduate degree in computer science and by misrepresenting DocGo's efforts to enroll migrants in New York Medicaid programs and its business relationship with UnitedHealthcare. Judge Failla found that the complaint sufficiently alleged that the defendants made several "indisputably false" and misleading statements regarding these matters with an intent to defraud. During this period, company insiders sold about $4 million of DocGo stock. After the truth came out in September 2023 that DocGo's former CEO never attended graduate school, DocGo did not enroll anyone in Medicaid, and that UnitedHealthcare did not have a contract with DocGo in New York, DocGo's stock price fell 25%.

We are investigating potential wrongdoing by DocGo's directors and officers in connection with these allegations.

If you own stock in DocGo, you may have legal options. Visit https://www.classactionlawyers.com/docgo to learn more.

About Schubert Jonckheer & Kolbe LLP

Schubert Jonckheer & Kolbe represents consumers in class actions against corporate defendants, as well as shareholders in derivative actions against officers and directors. The firm is based in San Francisco and, with the help of co-counsel, litigates cases nationwide.

Contact
Dustin L. Schubert
dschubert@schubertlawfirm.com
Tel: 415-788-4220

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SOURCE Schubert Jonckheer & Kolbe LLP

FAQ

What are the main allegations in the DocGo (NASDAQ: DCGO) securities fraud lawsuit?

The lawsuit alleges DocGo made false statements about the former CEO's graduate degree, misrepresented Medicaid enrollment efforts in New York, and falsely claimed a business relationship with UnitedHealthcare.

How much did DocGo (DCGO) stock drop after the allegations were revealed?

DocGo's stock price fell 25% in September 2023 after the revelations about the CEO's education and business misrepresentations.

What is the value of insider stock sales during the period of alleged fraud at DocGo?

Company insiders sold approximately $4 million worth of DocGo stock during the period between April 2022 and September 2023.

Who is investigating DocGo (DCGO) and what did the federal judge rule?

Schubert Jonckheer & Kolbe LLP is investigating DocGo, and Judge Katherine Polk Failla ruled that key claims in the securities fraud lawsuit could proceed, finding that the complaint sufficiently alleged 'indisputably false' statements.

What is the time period covered by the DocGo securities fraud allegations?

The allegations cover the period between April 2022 and September 2023, during which the company allegedly made false statements about various aspects of its business.