Sean Dodge, a stock analyst at RBC Capital Markets, testified that he observed Peizer’s trading activity through disclosure forms. Dodge said he had private and public calls with Ontrak’s executive team, including Peizer, and noted that the company seemed focused on expanding its business with major clients like Cigna and Aetna in early 2021.
Dodge recounted how Ontrak’s stock prices plunged 46% after Aetna unexpectedly ended its contract in March 2021. Following this, Ontrak adjusted its revenue guidance from $100 million to $85 million.
Despite reassurances from Ontrak executives about continued growth opportunities with Cigna, Dodge testified that no one disclosed issues with Cigna, such as reduced patient referrals and halted expansion plans. He stated that these issues were absent from Ontrak’s August 2021 securities forms.
During an August 2021 private call, Dodge queried Ontrak’s executives about Peizer’s stock sales, as investors had noticed and were concerned. Executives explained that Peizer was selling expiring stock warrants, not regular shares.
