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Personalized healthcare solutions provider Accolade Inc. has been named in a shareholder lawsuit seeking $4.8 million in damages. The suit alleges that Accolade and its CEO, Rajeev Singh, made misleading statements about the company’s profitability to boost share prices ahead of its planned merger with healthcare company Transcarent Inc.

Filed by Madera Technology Master Fund Ltd., the lawsuit claims that at a November 2023 investor conference, CEO Rajeev Singh assured attendees that Accolade would achieve profitability “in the very near term,” despite analyst forecasts projecting no profit until at least 2028. According to the complaint, no cautionary language was provided to temper these optimistic claims.

Accolade, which went public in July 2020, had yet to generate a profit by late 2023, with analysts predicting continued losses for the next 18 quarters. The suit further alleges that Singh and the company made these statements to support Accolade’s pursuit of a strategic acquisition, internally referred to as “Strategic A,” while being aware that the company’s financial performance was weak.

Following the November conference, Accolade’s stock price surged nearly 77% by early January 2024. However, the suit contends that the truth surfaced about six months later when the company reported a $3.3 million loss for the first quarter of its 2025 fiscal year, triggering a 44% drop in its share price.

In January 2025, Accolade announced its merger plans with Transcarent and went private in April 2025 as a wholly owned subsidiary. The lawsuit asserts that the proxy statement disclosed Accolade’s prior acquisition ambitions, which were not public knowledge at the time of Singh’s statements.

Madera Technology Master Fund Ltd. alleges violations of the Exchange Act and seeks damages of at least $4.8 million plus legal fees.

Representatives for Accolade Inc. and Rajeev Singh have not yet commented on the litigation.