Phreesia, Inc. Lawsuit Submission Form

Introduction

A securities class action lawsuit has been filed against Phreesia, Inc. (NYSE: PHR), its Chief Executive Officer Chaim Indig, and its Chief Financial Officer Balaji Gandhi on behalf of investors who purchased Phreesia common stock between May 8, 2025, and March 30, 2026. The complaint, filed in the United States District Court for the District of Delaware by plaintiff Michael Theodoulou through the law firms Farnan LLP and Levi & Korsinsky LLP, alleges that defendants made materially false and misleading statements about Phreesia's growth trajectory and revenue outlook for fiscal year 2027, particularly regarding the strength and durability of pharmaceutical marketing commitments within its Network Solutions segment. According to the complaint, the truth emerged on March 30, 2026, when Phreesia significantly reduced its fiscal year 2027 revenue guidance, attributing the shortfall to worsening visibility and weaker pharmaceutical marketing commitments. Phreesia's stock price declined approximately 27%, falling from $11.41 to $8.38 per share, causing significant losses to investors who had purchased shares at artificially inflated prices during the Class Period.

Company Profile

Phreesia, Inc. provides an integrated SaaS-based software and payment platform for the healthcare industry in the United States and Canada. The Company's platform offers solutions including appointment optimization, referral management, AI-enabled workflows, digital check-in, clinical and administrative data capture, patient payment processing, and analytics, and it operates a Network Solutions segment through which, according to the complaint, pharmaceutical and life sciences companies direct marketing spending to reach patients across Phreesia's provider network.

Class Period

May 8, 2025 – March 30, 2026, inclusive.

Investors who purchased or acquired Phreesia, Inc. (PHR) securities during the Class Period may be entitled to seek recovery under the federal securities laws.

Allegations

The complaint alleges that throughout the Class Period, defendants provided investors with an overwhelmingly positive portrayal of Phreesia's growth potential, repeatedly emphasizing the Company's ability to achieve its fiscal year 2027 revenue targets through continued expansion of its Network Solutions segment and contributions from its acquisition of AccessOne Parent Holdings, Inc. Defendants characterized pharmaceutical marketing commitments as a durable growth driver and consistently maintained or raised revenue and profitability guidance, while the complaint alleges they knew or recklessly disregarded that demand was slowing and visibility into key revenue streams was deteriorating.

On May 28, 2025, defendants published first quarter fiscal year 2026 results and maintained revenue guidance of $472 million to $482 million. During the accompanying earnings call, Defendant Gandhi told analysts that the Company's visibility into the year was "the same as it was last year at this time" and that there was nothing unusual to call out regarding Network Solutions performance. Defendant Indig described the fiscal year as "off to a strong start" and emphasized the Company's strong ROI and growing scale as reasons pharmaceutical clients would continue directing marketing dollars to Phreesia's platform. On September 4, 2025, defendants again reaffirmed revenue guidance while announcing the AccessOne acquisition and reporting a 25% growth rate in Network Solutions. Gandhi told analysts the Company was "in a similar place we were last year at this time" regarding the selling season and that the team was "performing really well," expressing confidence in the segment's trajectory. Indig highlighted emerging products including VoiceAI and HCP marketing as new growth levers, telling investors the Company was "positioning us well for the future."

On December 8, 2025, defendants narrowed and raised their fiscal year 2026 revenue outlook to $479 million to $481 million and introduced fiscal year 2027 revenue guidance of $545 million to $559 million, representing a 14-16% increase. Gandhi reiterated that Network Solutions would be the fastest-growing segment and highlighted expected contributions from new products including post-script engagement and HCP marketing. Indig described these emerging products as enabling Phreesia "to sustain growth and enhance stakeholder value" and positioned the Company's HCP marketing capabilities as a "multibillion-dollar" opportunity.

The complaint alleges these statements were materially false and misleading because defendants created the false impression that they possessed reliable information supporting the Company's long-term growth outlook while minimizing risks from slowing demand and reduced visibility in its Network Solutions segment. According to the complaint, Phreesia's portrayal of pharmaceutical marketing commitments as a durable growth driver was uncertain, putting the fiscal year 2027 revenue target at risk. The Individual Defendants, by virtue of their positions as CEO and CFO, had actual knowledge of or access to non-public information concerning the Company's slowing demand in Network Solutions, yet repeatedly and affirmatively represented that the segment's expansion would drive revenue growth and overall profitability.

The Truth Emerges

After the market closed on March 30, 2026, Phreesia announced its fourth quarter and full fiscal year 2026 results and significantly lowered its fiscal year 2027 revenue guidance to a range of $510 million to $520 million, down from the prior range of $545 million to $559 million. The Company disclosed that Network Solutions clients were committing lower spend levels for the second half of fiscal year 2027 than defendants had anticipated in December, citing worsening visibility into pharmaceutical manufacturer spending commitments and brand-specific dynamics including the impact of regulatory policies. Defendant Indig acknowledged that "segments of the life sciences industry are facing challenges" and that this was creating "more variability" in the Company's financial forecasting, while Gandhi described the booking environment as "very fluid" and identified specific areas of weakness including vaccines and public health agency spending.

As alleged in the complaint, the disclosures stood in direct contrast to the confidence defendants had expressed throughout the Class Period. Analysts reacted sharply: Truist Securities cut its price target from $24 to $11, noting the guidance reduction was "a surprising magnitude of change given that the company previously characterized their preliminary outlook as a 'conservative' starting point." J.P. Morgan lowered its target from $24 to $16 and downgraded the stock to Neutral, citing "worsening visibility into pharma DTC budgets." Citizens downgraded Phreesia to Market Perform, questioning the Company's ecosystem thesis and noting that "the company is also losing visibility into Network Solutions, which has been the fastest-growing revenue line in recent years."

Market Reaction

Following the March 30, 2026 disclosure, Phreesia's stock price declined from a closing price of $11.41 per share on March 30, 2026, to $8.38 per share on March 31, 2026, a drop of approximately $3.03 per share, or about 27%. The complaint alleges that the sharp decline reflected the market rapidly repricing Phreesia's stock as the artificial inflation from defendants' prior misleading statements was removed. Multiple analysts issued downgrades and significant price target reductions, underscoring the materiality of the information defendants had previously concealed from investors.

Next Steps

●      Lead Plaintiff Deadline: July 13, 2026

●      The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

●      The Court will then consider motion for class certification.

●      The Court will later consider a motion to dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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